2025 ESG REPORT YANTAI CHINA PET FOODS
Official Wechat
YANTAI CHINA PET FOODS CO. LTD
ENVIRONMENTAL SOCIAL
AND GOVERNANCE REPORT.NO.88 FEILONG ROAD LAISHAN ZONE YANTAI CHINA
400-111-8698
http://www.wanpy.com.cn2025 ESG REPORT YANTAI CHINA PET FOODS 01 / 02
ENVIRONMENTAL
SOCIAL AND
Report OvervGiOeVwERNANCE REPORT.This document constitutes the 2025 Environmental Social and Governance (ESG) Report for Yantai China Pet Foods
Co. Ltd. (hereafter referred to as "China Pet Foods" or "the Company").In alignment with the principles of objectivity standardization transparency and comprehensiveness this report
provides a detailed account of the Company’s practices and performance in sustainable development across three
dimensions - environment social responsibility and corporate governance. It outlines China Pet Foods' actions and
reflections on sustainability management addresses stakeholder expectations and concerns and fosters effective
communication with all relevant parties.·Scope of the Report
This report covers the period from January 1 2025 to December 31 2025. To ensure comparability and
completeness certain sections of this report include data from prior years where relevant.·Reporting Standards
This report is primarily based on the following internationally and domestically recognized frameworks for ESG
sustainable development and social responsibility: the Global Reporting Initiative (GRI) Sustainability Reporting
Standards International Organization for Standardization ISO 26000: 2010 - Guidance on Social Responsibility
the Hong Kong Stock Exchange ESG Reporting Guide the State-owned Assets Supervision and Administration
Commission (SASAC) Notice on Forwarding the Research on the Preparation of ESG Special Reports for Listed
Holdings of State-Owned Enterprises (SOEs) and the Self-regulatory Guidelines No.17 for Companies Listed
on Shenzhen Stock Exchange - Sustainability Reporting. Additionally the report incorporates industry-specific
context and highlights the unique characteristics of the Company.·Data Sources
The data information and case studies presented in this report are sourced from the Company’s public records
and internal statistics. Unless otherwise noted all financial figures are reported in Renminbi (RMB). In case of any
discrepancies between the financial data in this report and the annual report the figures in the financial report
shall prevail.·Report Access
The electronic version of this report is available for download on the Shenzhen Stock Exchange website (www.szse.cn) and the CNINFO website (www.cninfo.com.cn) where additional company information can also be found.2025 ESG REPORT YANTAI CHINA PET FOODS
CONTENTS
Report Overview 01 ESG Governance System 47 People First United in Purpose 83 Innovation-Driven Industrial Upgrading 107
Scope of the Report 1.Overall Employee Profile ·················· 85 1.Leading Industry Quality ··········· 109
Reporting Standards Sound Governance and Prudent Operations 53 2.Compensation and Promotion Policies ······ 86 2.A New Era of Digital Transformation · 111
Data Sources 3.Occupational Health and Safety ············· 87 3.Upholding Research Ethics ········· 112
Report Access 1.Robust Corporate Governance Framework ······ 55 4.Professional Skills Development ············ 89 4.Intelligent Quality Control ·········· 112
2.Information Disclosure and Investor Relations ·· 59 5.Employee Representative Conference ······· 91
About China Pet Foods 05 3.Investor Protection and Education ············· 61 6.Employee Benefits ························· 91
4.Standardized Internal Control Framework ······ 63 7.2025 Recognition Ceremony ················ 93
Core Business 5.Fulfilling Tax Obligations with Responsibility ··· 64 8.Facilitating Family Reunions ················· 95 Product Safety and Quality 113
Company Culture 9.Pet-Friendly Workplace ···················· 96
Highlights of 2025 10.Party Organization Development ········· 96
Company Milestones Green Development and Ecological Harmony 65 Outlook 119
1.Environmental Compliance and Management ··· 67 Protection of Supplier Customer
and Consumer Rights 97
Core Competitiveness 17 2.Advancing Clean Energy Initiatives ············ 69
3.Green Materials and Packaging Transformation ·· 69 1.Supplier Management ···················· 99 Indices of Guidelines Topics 120
1.Brand Strength ···················· 17 4.Environmental Capacity Building ·············· 71 2.Protection of Customer and Consumer Rights 99
2.Global Vision and Strategic Layout ·· 35 Public Relations
3.Product Quality Advantage ········· 37 and Social Responsibility 101
4.Technological and R&D Strengths ··· 39 Green Growth Smart Future 73
1.Setting an Industry Standard ··············· 103
5.Strong Risk Resilience ·············· 43
1.U.S. Facility ·································· 75 2.Rooted in Real Economy ··················· 104
6.Strategy in Action ·················· 45
2.Canada Facility ······························ 77 3.Fulfilling Corporate Responsibility ·········· 105
Honors and Accreditations 45 3.New Zealand Facility ························· 79 4.Through Light and Lens ···················· 106
4.Mexico Facility ······························· 81 5.Supporting Animal Welfare ················· 1062025 ESG REPORT YANTAI CHINA PET FOODS 05 / 062025 ESG REPORT YANTAI CHINA PET FOODS 07 / 08
Company Overview
Founded in 1998 China Pet Foods has been dedicated to the pet food industry for 28 years.As a pioneer in China's pet food sector the Company has grown into a top-tier enterprise
within the broader domestic pet industry.On August 21 2017 China Pet Foods was listed on the Shenzhen Stock Exchange (Stock
Name: China Pet Foods; Stock Code: 002891) becoming the first pet food company in China
to go public on the Shenzhen Stock Exchange (SZSE).As a trailblazer in China's pet industry China Pet Foods has remained dedicated to the pet
food sector. The Company specializes in the research development manufacturing and
distribution of a wide array of products for dogs and cats including dry foods wet foods
treats and dietary supplements. It is among the companies with the most extensive product
lines and the most diverse range of offerings in China’s pet food industry.The Company’s brand portfolio includes well-recognized names such as WANPY
TOPTREES and ZEAL. WANPY has been recognized as a “China Famous Trademark”
making China Pet Foods the first company in the pet food sector to receive such distinction.Pursuing a global strategy China Pet Foods has simultaneously expanded its presence across
international markets. The Company operates 28 modern high-end pet food production
facilities worldwide along with a national-level R&D center. It was the first in China’s pet food
industry to establish manufacturing operations in developed overseas markets and to acquire
international companies and brands. Today its products are exported to 90 countries across
five continents and its proprietary brands sold in 77 countries. Through a consistent focus
on international development and simultaneous global market expansion the Company is
steadily establishing itself as a leading player in the pet food industry - backed by a global
vision strategy and operational presence.Guided by our philosophy that “Pets are our friends and part of our family” China Pet Foods
has for 28 years approached pet food production with the same care and standards as
preparing meals for loved ones. The Company remains committed to delivering nutritious 中宠股份宠物营养与健康研究院
healthy and palatable food for our beloved dogs and cats around the world. 中国·烟台2025 ESG REPORT YANTAI CHINA PET FOODS 09 / 10
Core Business Company Culture
The Company is principally engaged in the research development production and sale of pet food. Its portfolio spans both canine
and feline categories encompassing dry complete food wet food treats and nutritional supplements. Its core product lines
comprise staple pet food wet pet food and pet treats each comprising a broad range of sub-categories. These include fresh-
meat formulas complete wet diets freeze-dried treats baked products alongside a wide range of protein-based treats—primarily
chicken duck beef and fish. The portfolio is further complemented by pet biscuits and dental chews among othvver offerings. In
total the company offers more than ten product lines comprising over 1000 SKUs.Our Philosophy
1.Dry Foods Pets are our friends and part of
our family.Our Mission
2.Wet Foods Promote the healthy standardized and high-quality development of
China’s pet industry.
3. Our VisionPet Treats To be the leading enterprise in
global pet food industry.
4.Health Core Value
Supplement Customer Quality Innovation Responsibility2025 ESG REPORT YANTAI CHINA PET FOODS 11 / 12
2025 Jan. 2025 Mar. 2025 Apr. 2025 Apr. 2025 Jun. 2025
In January 2025 the Company refreshed the visual In March 2025 China Pet Foods entered into a In April 2025 the Company commenced construction In April 2025 Toptrees the Company’s core In June 2025 the Company established its North The core proprietary brand Toptrees successfully
identity of its core proprietary brand WANPY strategic cooperation agreement with China National of its Global RDIS center with a total gross floor area proprietary brand entered into a strategic American headquarters in California becoming the partnered with China Central Television (CCTV)
aligning it more closely with its positioning as industry Research Institute of Food and Fermentation of approximately 13000 square meters. By bringing partnership with Baolai-Leelai to jointly establish first company in China’s pet food industry to build an and was awarded the authoritative certification of
leader with world-class quality while enhancing Industries (CNIF) and China Leather and Footwear together top-tier talent intelligent platforms and the “Joint Research Centre for Pet Microbiome”. integrated organizational structure in North America. "Craftsmanship Quality Leading Manufacturing". It conveys the brand philosophy that "Endorsed
brand recognition and consumer affinity. Industry Research Institute (CLF). The three parties industry–academia–research resources the facility is The collaboration has delivered notable progress in As a key strategic hub for its overseas operations the by CCTV More Assuring" further strengthening
focus on key technologies such as functional peptides designed to accelerate technological breakthroughs both fundamental research and applied translation North American headquarters integrates global R&D consumers' brand awareness. In the same year
and collagen advancing innovative applications in and the commercialization of research outcomes supporting advancements in pet microbiome health sales and supply chain capabilities supporting the Toptrees collaborated with another wide-acclaimed
pet food and supporting the Company’s high-quality strengthening the Company’s capabilities in pet the development of functional pet food and their Company’s brand globalization efforts. Chinese television drama My Own Swordsman
development. nutrition research and product innovation. industrial application. It also contributes to driving effectively strengthening the brand's differentiated
technological upgrading across the industry. advantage in the pet food market.
2025 Jun. 2025 Aug. 2025 Aug. 2025 Aug. 2025 Aug. 2025 Oct.
In June 2025 Christopher Luxon Prime Minister of In August 2025 the Company commenced In August 2025 WANPY the Company’s core In August 2025 the Company invested over RMB 100 In August 2025 at the general assembly of the Asia In October 2025 WANPY the Company’s core
New Zealand paid his first official visit to China since construction of a manufacturing facility in Mexico proprietary brand entered into a strategic partnership million in the development of its “2.0” Pet Nutrition Pet Alliance held in Shanghai where new leadership proprietary brand officially launched on Chewy
taking office. Mr. Hao Zhongli founder and Chairman becoming the first Chinese pet food enterprise to with DSM-Firmenich a global leader in nutrition and Health Research Institute covering more than was elected Mr. Hao Zhongli was appointed Lifetime a leading pet e-commerce platform in the United
of China Pet Foods was received by the Prime invest in and establish operations in the country. The health and biosciences. This collaboration integrates 100 mu. The completion of the institute marks a Honorary President in recognition of his outstanding States marking a significant breakthrough in
Minister in Shanghai as a distinguished business plant will produce a range of pet products including advanced nutritional science and innovative significant step forward in the Company’s capabilities contributions to the industry as the organization’s accessing key distribution channels in the North
representative of China’s pet industry. pet treats and marks a further deepening of the ingredients enabling pets in China to benefit from in pet nutrition and health and is expected to support founding president. American market.Company’s global manufacturing footprint. high-quality nutrition aligned with global standards. innovation and high-quality development in China’s
pet health sector.
2025 Nov. 2025 Nov. 2025 Dec. 2025 2025
In November 2025 the inaugural WANPY Global In November 2025 the Company commenced In December 2025 China Pet Foods officially launched In 2025 following the forward-looking strategy of In 2025 China Pet Foods' core proprietary brand
Distributor Conference was held in Yantai China. construction of its second pet treat manufacturing its digital transformation (SAP) project. The project globalized and diversified development the Company Wanpy joined forces with People's Daily Online toGuided by the principle of “Collaboration We facility in Cambodia further strengthening its covers the Group’s key global business systems revamped and upgraded its brand logo. The new comprehensively showcase world-class productionWin” the event brought together global partners production capacity and reinforcing its leading enabling integrated digital coordination across LOGO embodies the warmth of human-pet bond standards and quality control systems from the
to strengthen cooperation discuss long-term position in the country. The project is expected to research and development production supply chain conveys sincere care and interprets its commitment perspective of an authoritative media outlet.development strategies and jointly advance the enhance operational resilience and further advance and finance. to warmth and companionship. Subsequently the brand successfully signed a
brand’s international expansion. the Company’s global supply chain footprint. contract with national idol Ouyang Nana as its brand
ambassador leveraging the influence of the celebrity
to achieve cross-circle communication and building
a brand image of "Global Export Leader Trusted
Chinese Choice".Highlights of 20252025 ESG REPORT YANTAI CHINA PET FOODS 13 / 14
Start-up Phase: 1998-2002 Growth Phase: 2003-2011 Expansion Phase: 2012-2015
2008
2003 ·the Company commenced
·the Company established its construction of its fourth
1998 first pet treat manufacturing 2007 facility through a joint 2012
facility in Yantai. Built to the venture with IRIS a leading
·Mr. Hao Zhongli founder of China Pet Foods ·the Company’s third facility ·the Company entered into standards required for human Japanese conglomerate.transitioned from the foreign trade food sector to focused on pet treats was a joint venture with Vitakraft food exports the plant’s Conceived as a state-of-
enter the pet food industry. He leased a facility completed and commenced a leading German pet care hardware and operational the-art manufacturing base
to produce premium chicken jerky treats for pets operations. To strengthen company with a history systems met leading for premium pet treats
and successfully exported the products to Japan its domestic sales efforts it spanning 190 years to establish international benchmarks the project brought one of 2013
making the Company the pioneer in the China’s established Yantai Wanpy China’s first Sino-German dry and obtained registration the world’s most advanced
pet food industry. Pet Products Sales Co. Ltd. pet food facility—setting a new ·“Wanpy” was awarded with the U.S. Food and Drug production bases of its kind
dedicated exclusively to sales international benchmark for the “China Famous Trademark”
Administration (FDA). to Yantai. domestic dry food segment. 2015within China. becoming the first brand in
1999 China’s pet food industry to ·the Company’s facility in Southern
·the Company was recognized receive this designation. California the largest pet treat·the Company began selling as a “National High-Tech manufacturing plant in the Unitedchicken jerky products under Enterprise” reflecting its States was completed and
its proprietary brand “Wanpy” longstanding commitment to commenced operations. This marked
establishing “Wanpy” as the 2005 research and development the first time a Chinese pet food
go-to brand for chicken jerky ·the Company pioneered the development of since its establishment. enterprise invested in and built a
in China. the pet wet food segment in China constructing manufacturing base in a developed
the country’s first dedicated wet food facility. market marking the start of the
This move secured a clear first-mover advantage Company’s global industrial chain
and established its leadership position within the expansion.category.·the Company inaugurated a
modern logistics center featuring
2018 the first automated high-bay
·the Company completed warehouse in China’s pet food 2022
2017 the largest pet treat industry enhancing operational 2019 ·the Company invested RMB 400 million in · the Company entered into a strategic
On 21 August 2017 the Company was listed on manufacturing facility in efficiency and supporting the
·the Company invested in and the construction of a “5.0” next-generation cooperation agreement with China Agricultural
the Shenzhen Stock Exchange becoming the first Canada becoming the first Company’s continued growth. 2021 smart dry pet food manufacturing facility University in Beijing becoming the first company
pet food company in China to be admitted to the Chinese pet food enterprise
commenced construction of a
pet treat manufacturing facility in ·the Company acquired PetfoodNZ covering approximately 100 mu which has since in China’s pet food industry to establish such a
Exchange’s Main Board. to establish a production ·the Company commissioned a International Limited the largest pet commenced operations. The plant represents one partnership with the university. The collaboration
base in the country. Its new R&D center comprising four Cambodia becoming the first Chinese
pet food enterprise to establish canned food manufacturer in New of the most advanced dry pet food manufacturing focuses on advancing pet nutrition and proprietary brands including core units: a product research
“Great Jack’s” and “Buddy and development center a testing operations in the country. The facilityZealand. By integrating high-quality pet bases globally. health spanning fundamental research in pet
industry resources both domestically food nutrition formulation optimization andJack’s” successfully entered center an animal health monitoring is the largest of its kind in Cambodia. and internationally the acquisition ·the Company established the first deep-sea wild standardized production as well as industry
leading North American retail center; and a pet nutrition and strengthened the Company’s ability to tuna raw material processing facility in China’s talent development.channels such as Costco health institute. ·the Company commenced
construction of a new wet pet food provide premium pet food products to pet food industry enabling direct processing PetSmart Petco Pet Valu and
facility as part of its IPO-funded pets in China and across global markets. from ocean catch to factory ensuring optimal Chewy. ·the Company acquired 100%
equity interest in The Natural Pet projects with a total investment of
freshness. This vertically integrated model ensures
·the Company invested in and stable raw material supply reliable quality and
·the Company’s IPO-funded Treat Company Limited a pet food RMB 400 million. The project covers constructed a high-end wet pet food cost efficiencies reinforcing the Company’s
project—the world’s largest business with a 27-year operating a site area of approximately 70 mu
pet treat manufacturing history and owner of the New and a total gross floor area of 45000
facility in New Zealand which has product foundations and supporting long-term
facility—was completed and Zealand brand ZEAL. The transaction square meters and is positioned
become the largest of its kind in the brand development.country.commenced operations marked the first acquisition by a to be the largest wet pet food
representing an Industry Chinese pet food company of an manufacturing facility in the Asia-
4.0-enabled production established business and brand Pacific region.
platform. in a developed market further
advancing the Company’s global
expansion strategy.Company Milestones Transformation Phase: 2016-20222025 ESG REPORT YANTAI CHINA PET FOODS 15 / 16
Leapfrog Growth Phase：2023-2025
2024年
2023 ·the Company officially launched its new five-year ·the Company entered into
strategic plan centered on the development of a strategic cooperation
·the Company’s Huada Irradiation Centre with a proprietary brands with a focus on the domestic agreement with SAP a
designed annual sterilization capacity of 50000 tons market and accelerated expansion into overseas global leader in enterprise
commenced operations marking the beginning of a new markets. The strategy also emphasizes the steady application and cloud
phase in the application of irradiation technology within advancement of its global supply chain footprint solutions. This partnership ·the Company’s proprietary brand Toptrees
China’s pet food industry. the consolidation of its OEM business and its marks a significant step in launched a co-branded product series in
ambition to become a global leader in the pet the digital transformation of collaboration with the TV drama Empresses
·Cambodian Prime Minister Hun Manet visited the food industry. China’s pet food industry and in the Palace. The limited-edition rangeCambodia Zhejiang Special Economic Zone where the makes it the first company in was introduced under the theme “领先甄Company’s Cambodian subsidiary was received as a ·the Company established its Shanghai the industry to formalize such 安心 (Toptrees Selected with Confidence)”
representative benchmark enterprise. headquarters to attract top global talent support collaboration with SAP. generating strong market interest and
strategic upgrading and advance the next phase significant consumer engagement.of its global expansion.·the Company’s newly established high-end wet pet food facility in New
Zealand received a Special Contribution Award from the New Zealand
Chinese Building Industry Association (NZCBIA). The award was presented
by Christopher Luxon Prime Minister of New Zealand who commended
the Company’s growing brand presence and recognition in global markets.·China Pet Foods entered into a strategic
cooperation agreement with China National
Research Institute of Food and Fermentation ·the Company invested over RMB
Industries (CNIF) and China Leather and 100 million in the development of
Footwear Industry Research Institute (CLF). its “2.0” Pet Nutrition and Health
The three parties focus on key technologies Research Institute covering more
such as functional peptides and collagen than 100 mu. The completion of
advancing innovative applications in pet food the institute marks a significant
and supporting the Company’s high-quality step forward in the Company’s
development. capabilities in pet nutrition and
2025 ·the Company’s core proprietary brand health and is expected to support
·the Company’s core proprietary brand WANPY Toptrees partnered with China Central innovation and high-quality ·the Company refreshed the visual
partnered with People's Daily Online to showcase Television and received official recognition for development in China’s pet health identity of its core proprietary
its manufacturing standards and quality control its manufacturing quality and craftsmanship sector.brand WANPY aligning it more emphasizing that products endorsed by
closely with its positioning as systems through an authoritative media platform.The brand also appointed Ouyang Nana a authoritative institutions offer greater assurance industry leader with world-class
popular celebrity in China as its ambassador to consumers and further strengthening brand quality while enhancing brand ·In April 2025 the Company
recognition and consumer affinity. leveraging her public profile to broaden market
awareness. In the same year Toptrees also commenced construction of its
reach and enhance brand engagement while launched a co-branded product series with the Global RDIS center with a total
reinforcing its positioning as a leading exporter classic Chinese TV show My Own Swordsman gross floor area of approximately
of pet food products trusted for their safety and further enhancing its differentiation in the pet 13000 square meters. By
quality. food market. bringing together top-tier talent
intelligent platforms and industry–
·the Company established its North American
academia–research resources the
headquarters in California becoming the first
facility is designed to accelerate
company in China’s pet food industry to build
technological breakthroughs and
an integrated organizational structure in North
the commercialization of research
America. As a key strategic hub for its overseas
outcomes strengthening the
operations the North American headquarters
Company’s capabilities in pet
integrates global R&D sales and supply chain
Company Milestones nutrition research and product capabilities supporting the Company’s brand innovation.globalization efforts.2025 ESG REPORT YANTAI CHINA PET FOODS 17 / 18
Global Quality For the World
Core Competitiveness
1·Brand Strength
The Company leverages three core proprietary brands—WANPY Toptrees and ZEAL—
to strategically position itself in China’s mid- to high-end pet food market. Through a
differentiated brand portfolio the Company addresses diverse consumer needs while steadily
building brand recognition and consumer trust.In its global expansion the Company has adopted a proprietary brand-led strategy
promoting the international presence of its brands including WANPY ZEAL Great Jack’s
Jerky Time and TRULY. Its products are available in 77 countries across five continents.Supported by consistent product quality and clear market positioning the Company’s
overseas business has achieved steady growth with its global brand influence continuing to
strengthen.Through sustained market development the Company has established strong consumer
recognition and brand reputation in the mid- to high-end pet food segment and has
emerged as a key domestic player supporting the shift towards premium products and
locally produced alternatives in China’s pet food industry. Looking ahead the Company will
continue to advance its global expansion strategy leveraging technological innovation and
brand building to enhance its overall competitiveness in the global mid- to high-end pet food
market with the ambition of building a Chinese pet food brand with international influence.Guided by the philosophy of “Pets are our friends and part of our family” the Company
continues to build and maintain a strong brand image leveraging its differentiated
positioning global presence and high-quality standards to reinforce its leading position in the
mid- to high-end pet food market.2025 ESG REPORT YANTAI CHINA PET FOODS 19 / 20
Established in 1998 WANPY is the Company’s longest-standing and most widely
recognized proprietary brand and was among the first pet food brands in China’s pet
industry to be awarded the designation of “China Famous Trademark”.WANPY products are sold across 77 countries spanning five continents. Guided by
the philosophy of “World-Class Quality Made by WANPY in China” the Company
continues to implement its brand strategy further strengthening its international
recognition and reputation with early signs of increasing brand differentiation and a
more resilient competitive position.As a pioneer in the pet food industry WANPY is contributing to the evolution ofChina’s pet food market through export-grade quality standards. Its “Little GoldenShield” 100% fresh meat cat food is developed to global standards representing a
significant advancement in China’s fresh-meat pet food segment and setting a new
benchmark aligned with international quality levels. It further raises standards for safe
and reliable cat food offering pet owners a trusted feeding option.The upgraded WANPY “Little Golden Shield” product range now spans five core categories—baked kibble extruded
dry food complete and balanced cat purée sticks canned food and meal pouches—comprising a total of 12 products.2025 ESG REPORT YANTAI CHINA PET FOODS 21 / 22
WANPY × People's Daily Online: Inside WANPY’s World-class Manufacturing Facility
When technology meets responsibility every bite reflects care for pet health and well-being. In March 2025 WANPY The initiative enhanced public understanding of WANPY’s quality standards aligned with international benchmarks reinforcing its
partnered with People's Daily Online’s “Transparent Factory” program to showcase its manufacturing processes through brand positioning as a provider of export-grade high-quality pet food products. It also demonstrated WANPY’s confidence in its
a live-stream factory tour. Leveraging the credibility of an authoritative media platform the campaign achieved broad product quality and highlighted the strength of China’s advanced manufacturing capabilities to a global audience.audience reach generating over one million views on People’s Daily Online and tens of millions of impressions across digital
platforms.2025 ESG REPORT YANTAI CHINA PET FOODS 23 / 24
Brand Awards
Taobao & Tmall Merchant Service Conference (2025) WANPY was listed among Douyin E-commerce (2025)
Five-Star Store Award Premium Service Pioneer Award the Forbes China Valuable Brands in the pet industry. Pet Industry Growth Pioneer Award
In April 2025 WANPY officially announced Ouyang Nana a
talented cellist and a well-known multi-cat owner as its brand
ambassador. She joined the brand in promoting WANPY pet food
products reflecting her recognition of the brand’s commitment to
delivering higher-quality pet nutrition globally and its philosophy
of treating pets as family.Wanpy has transformed its Pet Nutrition and Health Research
Institute — home to more than 300 cats and dogs — into a
garden-style live streaming studio. Ouyang Nana the brand Pet Industry New Domestic Products Annual Awards (2025) TBI Awards (2025) At the inaugural Taobao Flash Sale Retail Brand Merchant Marketing Excellence Award Outstanding Brand Innovation Award Conference WANPY was the only pet food brand recognized
ambassador of Wanpy made a surprise guest appearance at the Global Expansion Award O2O Channel Innovation Award Gold Award for Domestic Brand Marketing with the “Outstanding Brand Operations Award”.live stream. She joined Hao Chenlong Wanpy's CEO and Chief
Product Officer along with numerous well-known KOLs to share
fun stories about cat raising discuss the selection criteria for
safe high-quality cat food host interactive games with massive
giveaways and delivered numerous iconic viral moments.Leveraging the extensive influence of Ouyang Nana Wanpy will
further raise awareness among young pet owners of this well-
established professional Chinese pet food brand founded in 1998.Over the past 28 years Wanpy has built its reputation on four core
strengths: No.1 export volume world-class quality listed company
status and industry leadership. Bridging the gap between
domestic and imported pet food the brand provides consumers
with export-standard products that boast imported-level quality
at domestic prices ushering in a brand-new chapter for Chinese Awarded by the Shandong Feed Industry Association and the WANPY was the only pet food brand recognized with Wanpy Brand Market Position Statement
domestic pet food brands. Shandong Pet Industry Association recognizing the Company’s the “Best Growth Award” by Meituan Flash Sale in 2025.capabilities in product development raw material quality
control manufacturing processes and brand reputation.2025 ESG REPORT YANTAI CHINA PET FOODS 25 / 26
“For Your Cat’s Health. For Your Peace of Mind. Choose TOPTREES.”
This message reflects the brand’s deep understanding of pet
owners’ concerns and its commitment to supporting pet wellbeing.TOPTREES is a premium pet food brand under China Pet Foods with a strong focus on science-based
preventive nutrition. Backed by integrated R&D capabilities spanning ingredient sourcing scientific
formulation and advanced manufacturing the brand translates its preventive nutrition philosophy
into real effective products. TOPTREES cat food has ranked No.1 in repeat purchase rate and growth
for three consecutive years making it a trusted choice for millions of pet-owning households and
demonstrating the effectiveness of its product approach in real-life feeding scenarios. Looking ahead
TOPTREES will continue to lead the development of China’s pet food industry towards a new era of
functional nutrition.TOPTREES × My Own Swordsman Campaign Poster
TOPTREES Product Range2025 ESG REPORT YANTAI CHINA PET FOODS 27 / 28
TOPTREES × My Own Swordsman Campaign Poster
In digital operations and channel services TOPTREES continued to demonstrate strong performance receiving
honors including Taobaos’“ Five-Star Store (2025)” Douyin E-commerces’“ Operational Excellence Pioneer Award (2025)”
and Alibaba’s “Digital Intelligence Excellence Team” and “VOC Data Insight Pioneer” awards reflecting its strengths
in refined operations and consumer insight.Toptrees × The Legend of Zhen Huan Campaign Poster
In terms of brand influence TOPTREES received dual honors at the Tmall New Consumer Brand Awards including
“Breakthrough Brand of the Year” and “Trendsetting Product of the Year”. Its cat food products were also
recognized by iiMedia Research with the “Influential Product Award in China’s New Consumer Market”. In digital
marketing the brand’s creative campaign “Reborn in Empresses in the Palace: Selling Cat Food” received the GoldAward in the IP Marketing category at the 16th Golden Mouse Contest as well as recognition as an annual “GoldPartner” by Alibaba in the IP Marketing category highlighting its innovative marketing capabilities.In April 2026 the commissioning ceremony of
the Toptrees advanced baked pet food facility
was held in Yantai China. Built to human-grade
standards the facility integrates research and
development manufacturing quality control
and warehousing representing a highly modern
efficient and intelligent production base. By
combining advanced manufacturing capabilities
with scientific research outcomes Toptrees has
enabled the efficient transition from laboratory
research to large-scale production transforming
scientific innovation into tangible and verifiable
product value.TOPTREES Product Range2025 ESG REPORT YANTAI CHINA PET FOODS 29 / 30
Driven by a passion for natural food a commitment to environmental sustainability and a deep respect for nature New Zealander
Harjit Sidhu founded the natural pet food brand ZEAL in 1999 - uncovering the secret to premium nutrition from one of the
world’s most pristine environments.Founded in 1999 ZEAL is a brand of The Natural Pet Treat Company (NPTC). Sourced from
New Zealand’s pristine natural environment ZEAL uses high-quality natural ingredients
and minimal processing to preserve the full nutritional value of its products. Committed to
bringing the best of New Zealand to pets worldwide ZEAL offers a comprehensive range of ZEAL Product Series
naturally sourced pet foods—including canned wet food for dogs and cats air-dried food
treats specialty milks and fish oil—all manufactured and packaged in New Zealand and now
ZEAL holds the FernMark License New Zealand’s
available in more than 30 countries and regions.prestigious national quality certification as well as
the official RMP certification and is included in the
ZEAL is more than just pet food — it represents a firm commitment to natural and
New Zealand Food Safety Authority (NZFSA) Risk
sustainable nutrition. The brand adheres to full traceability and maintains strict standards
Management Program. In August 2024 China Pet Foods’
throughout production with no use of fillers flavorings colorants or artificial preservatives.New Zealand facility was honored with the NZCBIA
Special Contribution Award presented in person by New
Guided by a deep respect for life and nature ZEAL carefully crafts every product to provide
Zealand Prime Minister Christopher Luxon - an event
complete and balanced natural nutrition supporting the wellbeing of pets while honoring
that celebrated the strength of intelligent manufacturing
the connection between people animals and the planet.from China.New Zealand Prime Minister Christopher Luxon Presenting Award to China Pet Foods
During the Pet Fair Asia ZEAL partnered with New
Zealand Trade and Enterprise to host a product launch
event for its King Salmon series. The event reinforced
ZEAL’s brand positioning of leveraging New Zealand–
China trade to translate premium ingredients into high-
quality nutritional solutions. The Company introduced
its new King Salmon product range including wet food
and air-dried products made from New Zealand deep-
sea king salmon sourced from cold currents. Supported
by the expertise and endorsement of New Zealand Trade
and Enterprise the launch highlighted the distinctive
strengths of New Zealand-origin pet food and reinforced
ZEAL’s reputation for quality and reliability offering
Chinese pet-owning households a premium nutrient-rich
feeding option.2025 ESG REPORT YANTAI CHINA PET FOODS 31 / 32
Global VI System Upgrade for ZEAL:
We unlock and reshape our global
brand equity boost brand recognition
deliver ZEAL's premium imported
brand image and strengthen market
competitiveness. Through refined
visual symbols and unified application
across all brand touchpoints we
deepen consumer memory and
emotional bonds.The upgrade also fully adapts to online
communication needs elevates cross-
platform compatibility communicates
our brand evolution vision and drives
sustainable growth of the brand's
commercial value.In 2025 ZEAL partnered with the Rolex Shanghai
Masters engaging a highly educated and affluent
audience of tennis enthusiasts. ZEAL was designated
as the exclusive pet food partner of the event
and became the first pet food brand in China to
collaborate with a premier international tennis
tournament. Through a tennis-themed marketingcampaign under the theme “Champion’s ChoiceZEAL × NEVER'S FAMILY IP Co-branded Super Cute Camp Season was officially launched. Winning Nutrition” the brand strengthened its
The limited-edition camping merchandise became a hit in the celebrity live streaming room unlocking the full premium positioning aligning the tournament’s
potential of the fan economy. Targeting the brand's core staple wet food cans we held offline events for the NEVER'S “master-level” ethos with the advanced nutritional
Camp Season and simultaneously launched the "ZEAL Brand Day" campaign in pet owner communities nationwide. profile of its King Salmon product range. The
The campaign reached over 200000 science-based pet owners in key cities across the country with over 3 million campaign also engaged key opinion leaders across
total online and offline impressions. It precisely reached 5000 high-quality pet-owning households gained over online and offline channels supporting strong sales
200000 organic views for online related hashtags and delivered 20 high-quality pet community events in the growth of the King Salmon canned product line while
Jiangsu-Zhejiang-Shanghai region. further consolidating ZEAL’s position in the premium
pet food segment.2025 ESG REPORT YANTAI CHINA PET FOODS 33 / 34
Brand-Led Global Expansion with
a Strengthened Global Footprint
In addition to strengthening its presence in China’s mid- to high-end pet food market through its proprietary
brands—WANPY TOPTREES and ZEAL—the Company has made its brand-led international expansion
strategy a core driver of global growth. Leveraging a portfolio of brands including WANPY TOPTREES ZEAL
Great Jack’s Jerky Time and TRULY the Company has established a global footprint with products sold
in 77 countries across five continents. Supported by consistent product quality and clear market positioning
the Company’s overseas business has maintained steady growth with its global brand influence continuing to
strengthen.Looking ahead the Company will continue to deepen its globalization strategy leveraging technological
innovation and brand building to further enhance its competitiveness in the global mid- to high-end pet food
market with the ambition of building a Chinese pet food brand with international influence.The Company pursues coordinated development across global markets. In international markets it actively
participates in leading industry exhibitions such as the Global Pet Expo in Orlando strengthening partnerships with
overseas distributors and retailers expanding its global sales network and accelerating the internationalization of its
brands to deliver high-quality products and services to consumers worldwide.2025 ESG REPORT YANTAI CHINA PET FOODS 35 / 36
201520182025
China Pet Foods invested USD 28 million to build what was then the largest pet China Pet Foods invested USD 16 million to establish the then largest pet treat the Company’s Mexico facility was completed with a site area of approximately
treat facility in the United States. The plant became operational and profitable factory in Canada. The facility produces the Company’s proprietary brands 10000 square meters and production covering pet treats and related product
within the same year. More notably it marked the first time a Chinese pet food including Great Jack’s and Buddy Jack’s which have successfully entered major categories. The Company became the first Chinese pet food enterprise to establish
company had established manufacturing in a developed market. North American retail chains such as Costco PetSmart and Petco. operations in Mexico marking a further strategic step in the expansion of its global
supply chain.
201820212021
the Company acquired 100% equity in The Natural Pet Treat Company Limited the Company invested in and constructed a premium wet pet food the Company acquired PetfoodNZ International Limited the largest pet canned
a pet food company with a 27-year history and the owner of the ZEAL brand in production facility in New Zealand. food manufacturers in New Zealand. This acquisition enabled the integration of
New Zealand. This transaction marked the first acquisition by a Chinese pet food high-quality resources across domestic and international pet food value chains
company of an established business and brand in a developed market further supporting the provision of a broader range of high-quality pet food products to
advancing the Company’s globalization strategy. both domestic and global markets.
2·Global Vision and Strategic Layout
the Company established the then 2019
With over two decades of experience in the pet food industry China Pet Foods largest pet treat factory in Southeast
has evolved into a multinational enterprise with a global perspective and strategic Asia through an investment in
international footprint. Its manufacturing operations spans six countries: China the Cambodia. The facility became
United States Canada Mexico New Zealand and Cambodia. Notably the launch of its U.S. operational and profitable within
facility marked the first instance of a Chinese pet food company establishing production the same year. Leveraging local raw
in a developed market. materials and labor cost advantages
it serves China Pet Foods’ global
Against the backdrop of sustained growth in the pet industry the Company remains supply chain.committed to building a leading supply chain platform. Taking a forward-looking and
holistic approach to capacity planning it aims to establish a resilient global supply chain
characterized by high product quality stable operations and strong risk management
capabilities forming a robust competitive moat.2025 ESG REPORT YANTAI CHINA PET FOODS 37 / 38
3·Product Quality Advantage
The Company upholds a quality-first approach maintaining strict quality control throughout the entire production process—from
raw material sourcing and intake to manufacturing and final product release. Rigorous inspection procedures are implemented at
each stage to ensure product safety and consistency. For key raw materials such as chicken suppliers are selected from enterprises
registered with relevant government authorities in accordance with regulatory requirements. All raw materials are required to
comply with national standards on microbiological levels veterinary drug residues and heavy metal content ensuring the safety
and quality of the Company’s products.To further ensure product integrity the Company has implemented a product traceability system and a defective product recall
mechanism. These systems enable full tracking of each product from the specific materials used to the production process and
shipping. The batch numbers of raw auxiliary and packaging materials their suppliers storage times and usage of each material
can all be tracked as can the production time key processing steps responsible personnel and shipment details. This end-to-end
visibility ensures strict oversight and helps guarantee the safety and reliability of every product delivered to market.The Company and its subsidiaries have obtained a wide range of internationally recognized certifications including ISO 9001 (Quality
Management) ISO 22000 (Food Safety Management) ISO 14001 (Environmental Management) HACCP (Hazard Analysis and
Critical Control Points) GMP (Good Manufacturing Practice) and BRCGS Global Standard for Food Safety among others. In total
the Company has passed 20 major global certifications along with official registrations in several developed markets including
the United States Japan Canada Australia and the European Union. As one of the most comprehensively certified pet food
companies in China these credentials reflect a high level of confidence in the Company’s quality management systems and product
consistency. More importantly they also provide a solid foundation of quality assurance and credibility as the Company continues
to expand its presence in both domestic and international markets.The core themes of SMETA (Sedex Members Ethical Trade Audit) certification include labor standards health and safety
environmental impact and business ethics. BSCI (Business Social Compliance Initiative) audits focus on areas such as legal
compliance freedom of association and collective bargaining non-discrimination fair compensation working hours workplace
safety prohibition of child and forced labor as well as environmental protection and safety.The Company obtained both SMETA and BSCI certifications early on underscoring its status as an internationally credible and
socially responsible enterprise. These certifications affirm the Company’s capability to fulfil global orders and maintain a positive
corporate reputation. More importantly they reflect the Company’s commitment to ethical and responsible business practices
– both in collaboration with clients and throughout the supply chain – and its ongoing efforts to uphold social responsibility
throughout the course of its development.Left:
April 2026 | Group Photo of
Guests at the WANPY Product
Upgrade Global Launch Event
Right:
Launch of the WANPY Brand
International Quality Standard
for Pet Food
WANPY Little Golden Shield: Certified to International Quality Standards by SGS
In March 2026 SGS a globally recognized third-party testing and certification body issued an official
report confirming that the entire WANPY Little Golden Shield (XIAOJINDUN) premium pet food range
meets export standards across four major markets: China the European Union the United States and
Japan.With over 140 years of experience in testing and certification industry leader SGS is widely recognized
by governments and trade organizations worldwide. SGS’s certification confirms that WANPY Little
Golden Shield products have undergone rigorous assessment against internationally recognized
standards. It also indicates that WANPY is among the first in the industry to achieve compliance with
export standards across these major markets while implementing batch-by-batch testing across its full
product range in line with these requirements. By aligning its quality benchmarks with global standards
WANPY continues to strengthen trust in Chinese pet food brands in international markets.2025 ESG REPORT YANTAI CHINA PET FOODS 39 / 40
4·Technological and R&D Strengths Advancing product innovation through sustained R&D investmentOver the past 28 years the Company has been guided by its philosophy that “Pets are our friends and part of ourfamily” placing consumer value at the center of its development. It is committed to advancing pet health globally by
addressing the nutritional needs of pets across all life stages and consumption scenarios.The Company places research and innovation pet nutrition and health as well as product quality and safety at the
core of its operations. Established in 1998 its R&D center spans over 12000 square meters and is among the most
advanced in China’s pet food industry.Quality and Safety Research Centre
China Pet Foods’ Quality and Safety Research Centre comprises five
specialized testing areas including physicochemical microbiological
spectroscopic chromatographic and molecular biology laboratories.Equipped with advanced analytical instruments—such as liquid
chromatography–mass spectrometry (LC–MS) atomic absorption
spectrometers amino acid analyzers and Kjeldahl nitrogen analyzers—
and supported by a team of highly qualified professionals the Centre
represents one of the leading laboratory facilities in China’s pet food
industry. The laboratories have been accredited by the China National
Accreditation Service for Conformity Assessment (CNAS) demonstrating
that their testing capabilities are aligned with international standards and
that their results are internationally recognized.In 2025 the Company’s Global R&D and Innovation Service Centre reached structural completion. The six-story
facility with a total floor area of over 12800 square meters is designed to serve as an intelligent hub supporting the
Company’s future development. The center will house a range of advanced laboratories including those dedicated to R&D and Innovation Centre
pet behavior research nutrition and health and precision physical and chemical testing. It is structured to support an Guided by precision nutrition the R&D and Innovation Centre has
established a research system covering the full lifecycle of pets enabling
integrated research framework covering raw material research new product development pet nutrition and health comprehensive testing and the generation of high-value experimental data.animal behavior studies and collaborative research platforms. The Centre comprises specialized laboratories dedicated to drying freeze-
drying baking functional product development and stability studies. It also
includes biochemistry and routine testing laboratories a sterile laboratory
At its core the CNAS-accredited laboratory has been certified against 67 testing standards including those of AOAC immunology laboratory ultrasound imaging laboratory and pathology
the FDA and Chinese national standards. Its testing capabilities are aligned with international standards with results laboratory.widely recognized internationally. With its headquarters in Yantai China the Company has established a global R&D
collaboration network spanning the United States Canada New Zealand Cambodia Mexico and the Netherlands.Leveraging world-class quality China-led R&D and proprietary standards it is driving the high-quality development
of the global pet food industry. Pet Nutrition and Health Institute
The Pet Nutrition and Health Institute has a total area of approximately
The Company has established a multidisciplinary R&D team covering food science veterinary medicine animal 10000 square meters and comprises dedicated zones for laboratory
health and nutrition. It is also supported by a panel of external experts from the United States Germany Canada research breeding testing and outdoor activity. It is the first garden-like
New Zealand and China including nationally recognized specialists. Over the past three years the Company has pet testing facility of its kind in China. The testing base currently houses over 300 cats across more than 30 breeds.undertaken 29 internally initiated research projects secured approval for three provincial-level technology programs
and led the development of more than ten R&D outcomes addressing key gaps in the industry and supporting the All products are subject to a feeding trial of up to six months prior to
launch to assess palatability and ensure nutritional adequacy.sustainable development of China’s pet food sector. As of 7 April 2026 the Company had been granted a total of 400
national patents including 18 invention patents.2025 ESG REPORT YANTAI CHINA PET FOODS 41 / 42
China Pet Foods Signs Strategic Cooperation Agreement with dsm-firmenich Toptrees × Baolai-Leelai: Toptrees × College of Animal Science and Technology
Establishment of the Pet Microbiome Joint Research Centre Nanjing Agricultural University:
Deepening Industry–Academia Collaboration to Advance
Integrated Research and Innovation
Signing Ceremony of Strategic Cooperation Agreement between the Company Toptrees × Nanjing Agricultural University: Toptrees × Epax and Alliance Nutrition Group:
CNIF and CLF Signing Ceremony with Professor Li Lian’s Research Team Group photo of representatives from both sides
In March 2025 the Company entered into strategic partnerships with China National In February 2025 Toptrees entered into a strategic partnership with Professor In February 2026 representatives including Mao Shengyong Dean and Sang
Research Institute of Food and Fermentation Industries (CNIF) and China Leather Li Lian and her research team at Nanjing Agricultural University to advance Yukun Party Secretary of the College of Animal Science and Technology at Nanjing
and Footwear Research Institute (CLF). The collaboration focuses on the innovative applied research in foundational pet nutrition. The Company also collaborated Agricultural University together with their expert team as well as Haakon Brokke
application of core technologies - such as functional peptides and collagen - in the with Baolai-Leelai Bio to establish a joint research center focused on pet gut APAC Sales Director of Epax and Kévin Ransbotyn General Manager of Alliance
pet food sector. Together the partners aim to drive scientific innovation and industrial microbiome health and functional pet food development. In addition Toptrees Nutrition Group visited the Company’s headquarters for exchanges and discussions.upgrading while jointly exploring a new integrated model of technology industry and has developed a five-pillar product assurance framework covering formulation
social responsibility in China’s pet food industry. design raw material traceability manufacturing processes quality control and
nutritional science ensuring product safety and scientific integrity.2025 ESG REPORT YANTAI CHINA PET FOODS 43 / 44
5·Strong Risk Resilience
In recent years the global geopolitical landscape has evolved rapidly alongside slower economic growth and persistent inflationary
pressures placing the global economy in a period of profound structural adjustment. Against this backdrop uncertainty in the
international environment has increased significantly with businesses facing a more complex and multi-dimensional risk landscape.From rising trade barriers to the risk of technological decoupling traditional economic risks are increasingly intertwined with
emerging non-traditional challenges placing higher demands on corporate resilience. In the context of ongoing changes in the
global governance framework strengthening risk management capabilities and building adaptive mechanisms have become
essential to sustainable business development.From the perspective of its global supply chain platform the Company has adopted a globally integrated production model
significantly enhancing its resilience to risk. In addition to its large-scale production bases in China the Company operates
manufacturing facilities in the United States New Zealand Canada Cambodia and Mexico. This global manufacturing footprint
strengthens its ability to respond to unexpected disruptions and regional risks meet the needs of customers in different markets
and ensure stable supply of its products across countries and regions worldwide.Across its global markets the Company’s products are distributed across 90 countries spanning five continents while its domestic
operations have achieved rapid growth. In particular the scale of its proprietary brand business has expanded significantly
reducing reliance on any single customer or business segment to levels well below the industry average. As a result the stability of
the Company’s operations and its overall risk resilience have continued to improve.2025 ESG REPORT YANTAI CHINA PET FOODS 45 / 46
6·Strategy in Action: A Clear Roadmap for Growth Corporate Accreditations
Five-Year Strategic Plan:
Based on macroeconomic trends industry development dynamics and the Company’s own growth stage the
Company formulated a clear new five-year strategic plan in 2023. The strategy centers on strengthening proprietary
brand development with a focus on the domestic market while accelerating international expansion. It also aims
to steadily advance the global value chain and reinforce the scale of its established OEM business supporting
the Company’s vision of becoming a leading player in the global pet food industry. Under this five-year strategic
framework the Company is focused on building a strong portfolio of proprietary brands to enhance brand
momentum; expanding and strengthening its domestic market presence to unlock growth potential; accelerating
brand internationalization to extend its global footprint; strengthening value chain integration to optimize resource
allocation; and enhancing operational efficiency to unlock value in existing markets. Through these initiatives the
Company continues to strengthen its overall capabilities and support stable high-quality business growth.Corporate Honors2025 ESG REPORT YANTAI CHINA PET FOODS
2025 ESG REPORT YANTAI CHINA PET FOODS 47 / 482025 ESG REPORT YANTAI CHINA PET FOODS 49 / 50
Material Topic Management and Assessment
Commitment to Sustainable Development
During the reporting period China Pet Foods carried out a systematic assessment of ESG material
China Pet Foods actively supports the United Nations Sustainable Development topics to identify the issues most relevant to the Company’s operations and stakeholders. The aim
Goals (SDGs) and has embedded sustainability into its corporate strategy. was to provide a sound basis for the development of ESG plans and corresponding actions. To ensure
comprehensive coverage and well-grounded prioritization the Company followed a structured process
The Company has set clear internal targets and detailed action plans to that included:
advance ESG practices across all levels of its operations. With a strong sense of
environmental responsibility a firm commitment to social accountability and a 1. Reference to Authoritative Standards and Guidelines:
focus on improving governance China Pet Foods continues to contribute to the China Pet Foods initially screened ESG topics with reference to a range of domestic and international
global sustainability agenda - demonstrating both determination and practical standards including the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises
action in response to this worldwide call. (CASS-CSR 4.0) the General Framework for Corporate Sustainability Reporting (CASS-ESG 6.0) the
Global Reporting Initiative’s Sustainability Reporting Standards (GRI Standards) China’s national
standard Guidance on Social Responsibility Reporting (GB/T 36001-2015) and the SDG Compass: Guide
ESG Governance Structure for Business Action. These frameworks helped ensure alignment with international best practices and
China Pet Foods is committed to establish an efficient and integrated ESG governance 2. In-depth Stakeholder Engagement:
structure that extends from the board of directors to functional departments and individual China Pet Foods collected feedback on ESG topics from key stakeholders - including customers
employees. The Board Strategy Committee serves as the central body for ESG oversight employees shareholders suppliers government agencies and the general public - through a variety
and is responsible for providing strategic guidance and ensuring that ESG principles are of channels such as surveys written responses conference calls and interviews. Combined with input
embedded in top-level decision-making. from the Board Strategy Committee this process provided a multidimensional view of stakeholder
To support implementation the Company has formed a dedicated ESG working group tasked 3. Industry Trends and Internal Risk Assessment:
with preparing and releasing the annual ESG report evaluating performance identifying The Company benchmarked ESG practices against domestic and international peers and examined
risks and opportunities and developing improvement plans. The group promotes effective developments in sectors such as IoT and semiconductors. These insights together with internal
execution through cross-departmental coordination. operational and strategic considerations informed the evaluation of ESG-related risks and opportunities
and helped identify topics critical to mid-to-long-term business development.Department managers communicate the directive of the Strategy Committee and ESG
working group to all employees ensuring that sustainability goals - such as energy
4. Materiality Assessment and Prioritization:
conservation and emissions reduction - are reflected in daily work. Employees regularly
A materiality matrix was used to assess ESG topics based on two dimensions: their impact on business
log relevant data and report it to their supervisors. These records not only underpin ESG
development and their importance to stakeholders. The results were reviewed by the ESG working group
disclosures but also support review and continuous improvement of the Company’s ESG
before being submitted to the Board Strategy Committee for validation and final prioritization.efforts.2025 ESG REPORT YANTAI CHINA PET FOODS 51 / 52
Stakeholders Communication and Response Channels Key Concerns Our Responses
ESG Governance Structure and Functions
Legal operation
Board of ESG ESG tax compliance Tax compliance
Directors Working Groups Supportive Units Governments / Supervision and inspection economic contribution legal operation
reporting work reports safe management safe production Regulators seminars and research environmental protection environmental
1. Define the Company’s 1. Implement the Company’s ESG strategy and 1. Act as the resource management protection
ESG strategy and objectives. objectives organizing and coordinating ESG efforts liaison for ESG
across departments. work across
2. Identify and oversee departments.
ESG-related risks and 2. Organize the identification of ESG-related risks Company development
Shareholders / Shareholder meetings transformation and reform opportunities that and opportunities across various units preliminarily Improve profitability 2. Assist in performance briefing profitability information transparency
significantly impact the review results and report findings to the Board. executing relevant Investors information disclosure cost management timely communication
business. ESG tasks based daily communication information disclosure strengthen management
3. Draft ESG policies related topics phase-specific on the ESG technological innovation
3. Make decisions on major plans and implementation proposals. Working Group’s
ESG-related matters instructions and
including but not limited to 4. Oversee the collection and compilation of ESG- the department’s Supply chain management
ESG management systems related data prepare ESG reports and related responsibilities. Public tender procedures standard operation Suppliers / Provide quality services and products
and ESG reports. documents. integrated platforms fair competition fulfill contracts and uphold trust
Partners supplier evaluation system compliance with contracts service quality supplier management and access
4. Supervise the 5. Communicate with consulting and rating payment terms
implementation of ESG agencies organize ESG business training and track
development directions and ESG policy requirements and trends.strategic goals. Products and services Fair and transparent
6. Summarize issues and achievements in ESG compliance procurement
work provide timely feedback to the Board and Seminars risk management reasonable prices
customer visits
offer recommendations for improvement. Customers contract fulfillment ensure supply satisfaction surveys integrity strategic cooperation
quality management negotiations
ESG Stakeholder Engagement
Financial Business performance Feedback on business Business negotiations operational risks performance
Institutions visitor receptions loan repayment timely repayment of loans
China Pet Foods places high importance on active and close engagement with stakeholders. Through
well-established communication mechanisms and diverse information channels the Company listens
to stakeholder views ensures transparency and participation and works to strengthen mutual Employee rights Compensation guarantee
understanding and trust. In light of its evolving business and external environment the Company has Employee representative career advancement employee training
identified seven core stakeholder groups: customers employees developer communities suppliers meetings democratic review Employees compensation and benefits welfare benefits
investors government bodies and the general public/media. meetings seminars occupational health democratic management
questionnaire-based surveys integrity improve work environment
emergency assistance and conditions
It closely monitors their priorities and concerns and responds in a timely manner through various
channels to align key issues with stakeholder expectations market trends and strategic opportunities.By embedding stakeholder expectations into its strategic planning and daily operations China Pet Public outreach activities
Foods continues to enhance its sustainability management and work collaboratively toward shared Community / field trips Community collaboration Poverty alleviation social welfare charity donations
development goals. research Public visitor receptions rural revitalization ecological protection2025 ESG REPORT YANTAI CHINA PET FOODS
2025 ESG REPORT 烟台中宠食品股份有限公司 53 / 542025 ESG REPORT YANTAI CHINA PET FOODS 55 / 56
1·Robust Corporate Governance Framework
Since its establishment the Company has developed and implemented a comprehensive
corporate governance framework in accordance with applicable laws and regulations including
the Company Law the Securities Law and the Code of Corporate Governance for Listed
Companies. It has adopted a series of internal policies including the Rules of Procedure for
Shareholders’ Meetings the Rules of Procedure for the Board of Directors the Independent
Directors’ Working System the Chief Executive Officer’s Working Guidelines the Board
Secretary’s Working Guidelines and the terms of reference for the Board’s specialized
committees.Through these measures the Company has established a corporate governance structure
in line with regulatory requirements for listed companies forming a management system
characterized by coordination and checks and balances among its governing bodies decision-
making bodies supervisory bodies and executive management. The shareholders’ meeting the
Board of Directors and the management team operate independently and in compliance with
applicable laws and regulations fulfilling their respective rights obligations and responsibilities
and effectively safeguarding shareholders’ interests.2025 ESG REPORT YANTAI CHINA PET FOODS 57 / 58
In accordance with applicable laws and regulations including the Company Law and the Securities Law the Company
has established a well-structured corporate governance framework supported by effective governance policies and
operational procedures. The Company has put in place a governance structure comprising the shareholders’ meeting Remuneration and Audit Committee Appraisal Committee
the Board of Directors and its specialized committees as well as executive management. Through structured systems 4 In 2025 the Audit Committee convened seven meetings In 2025 the Remuneration and Appraisal Committee
covering internal control risk management incentive and restraint mechanisms and information disclosure the and discharged its duties in accordance with applicable convened three meetings. The Committee reviewed
Company ensures that its governing bodies decision-making bodies supervisory functions and management operate requirements. The Committee reviewed the Company’s and assessed the remuneration of Directors and
independently with clear delineation of responsibilities and effective checks and balances forming a well-regulated financial position and operating performance and senior management and provided professional
9 considered matters including periodic reports changes recommendations to support the development modern corporate governance mechanism. to the implementation location and execution entities of remuneration policies and plans. In addition it of certain proceeds-funded investment projects reviewed matters relating to the expiry of the first lock-The shareholders’ meeting is the Company’s highest authority and a key mechanism through which shareholders profit distribution and internal audit activities. It also up period under the 2024 employee share ownership
exercise their lawful rights. The Company convenes and conducts shareholders’ meetings in strict accordance with reviewed the establishment and implementation of the plan supporting the effective implementation of
Company’s internal control systems providing effective the scheme in motivating employees and fostering
its Articles of Association and the Rules of Procedure for Shareholders’ Meetings ensuring shareholders’ rights to oversight and guidance on the Company’s financial innovation thereby contributing to the Company’s
information and participation. management and operations. long-term and sustainable development.In 2025 the Company convened a total of four shareholders’ meetings including one annual general meeting
and three extraordinary general meetings during which 27 resolutions were considered and approved. 7 Strategy Committee Nomination Committee
In 2025 the Strategy Committee convened one The Nomination Committee of the Board of Directors
meeting. Taking into account global and domestic determines the selection criteria for Directors and
economic trends and the specific dynamics of the senior management in line with the Company’s
industry the Committee conducted a thorough analysis development needs and conducts broad searches for
of the Company’s operational performance growth qualified candidates to ensure a robust talent pipeline
prospects and the risks and opportunities shaping the to support the Company’s future operations.sector. It offered targeted recommendations to support
the execution of the Company’s development strategy
helping ensure the soundness of long-term planning
and decision-making. Its work provided strategic
guidance that contributed to the Company’s continued
stable growth.All Directors and senior management perform their duties with integrity diligence and
due care acting in the best interests of all shareholders. Independent Directors comply
with applicable laws regulations and relevant requirements and diligently fulfil their
responsibilities providing independent and objective judgment on the Company’s
operations decision-making and significant matters.All Directors of the Company perform their duties in accordance with applicable laws and regulations including the
Guidelines No. 1 of Shenzhen Stock Exchange for Standardized Operation of Main Board Listed Companies as well
as the Company’s internal policies such as the Rules of Procedure for the Board of Directors and the Independent
Directors’ Working System. Directors attend Board and shareholders’ meetings as required actively participate in
training programs and continuously enhance their understanding of relevant laws and regulations fulfilling their
responsibilities with integrity diligence and due care.During the reporting period the Company convened a total of nine Board meetings at which 39 resolutions
were reviewed and approved. Matters considered included periodic reports revisions to certain governance
policies profit distribution and decisions regarding not to redeem outstanding convertible bonds. All Directors
maintained a 100% attendance rate at Board meetings.In addition the specialized committees of the Board of Directors have fulfilled their respective responsibilities and
played an active role in the Company’s governance.2025 ESG REPORT YANTAI CHINA PET FOODS 59 / 60
Active Investor Engagement
Following each annual semi-
2·Information Disclosure and Investor Relations annual and quarterly report
China Pet Foods engages with
both institutional and retail
The Company’s stable operations are underpinned by the continued support of its investors. It maintains regular and
investors in a proactive timely
transparent disclosure of key operational information and actively engages with investors to address their questions
and transparent manner - through
and respond to their concerns. Through these efforts the Company seeks to build a positive corporate image among
online platforms as well as virtual
investors enhance its visibility and reputation and strengthen market recognition thereby supporting the long-term
and in-person roadshows. The
development of its brand value.Company also holds regular
investor education sessions
Timely and Accurate Disclosure and performance briefings and
responds promptly to questions
submitted via the SZSE Investor
To ensure the clear transmission consolidation and effective management of material matters and to support timely Relations Interactive Platform ( 互
truthful accurate and complete disclosure while safeguarding the legitimate rights and interests of the Company 动易 ).and its investors - China Pet Foods has implemented a Material Matters Reporting Policy. The policy defines the
scope of reporting personnel procedures and reportable items covering areas such as related-party transactions
outbound investments management of raised funds guarantees and material risk events. In the past the complexity
and cross-functional nature of these matters often led to delays or inconsistencies in communication affecting the
timeliness and accuracy of disclosures. The introduction of this policy has resolved key challenges by establishing
a clear reporting process for material matters leading to more timely disclosures. It has also helped standardize
business procedures across departments.In addition the Company has designated China Securities Journal and Securities Times as its official disclosure
outlets and proactively and timely discloses all information that may have a material impact on shareholders and
other stakeholders ensuring that all shareholders have equal access to information.In 2025 the Company published a total of 146 disclosures through authorized channels such as CNINFO
including 142 ad hoc announcements and four periodic reports.The Company regularly hosts its “Inside a Listed Company” series designed to offer investors a well-rounded and
immersive engagement experience. During each event the Company’s management team communicates openly and
professionally - sharing insights into its strategic direction operational performance and past performance. The goal
is to give investors a clear structured view of the Company’s development journey.latest research findings and innovative development philosophies reflecting the Company’s ongoing commitment
and strength in advancing pet nutrition and health.The Company’s successful fundraising efforts and rising market valuation in recent years reflect not only its strong
business performance but also the quality of its investor relations. Maintaining constructive engagement with
investors is essential to fostering a stable market environment. To this end the Company has built a communication
Investor Relations Awards of China Pet platform defined by openness dialogue and transparency—helping investors gain a clearer understanding of
Foods (Partial) Company’s business and contributing to a healthy mutually beneficial ecosystem.2025 ESG REPORT YANTAI CHINA PET FOODS 61 / 62
3·Investor Protection and Education
Safeguarding investor and financial consumer rights is fundamental to public well-being and a vital part of serving
the public interest. It reflects a people-centered development philosophy and serves as a cornerstone for the
healthy sustainable development of the financial sector. As an active participant in Yantai’s financial ecosystem the
Company advanced investor education and protection initiatives in 2025 contributing to a more rational investment
environment and strengthening the protection of investors’ rights and interests.From 15 to 21 September 2025 the Company participated in the
“2025 Financial Education and Awareness Week”.As a listed company in the pet food industry the Company remains
guided by its philosophy that pets are our friends and part of our
family. It integrates investor and financial consumer protection
into its corporate development through compliant operations and
transparent disclosure demonstrating its commitment to protecting
financial rights and supporting a better quality of life.World Investor Week 2025 (20–24 October) initiated by the
International Organization of Securities Commissions (IOSCO) is a
global campaign dedicated to investor education and protection.The 2025 program focused on three themes of “Technology andDigital Finance” “Artificial Intelligence” and “Fraud and ScamPrevention”. The initiative emphasized raising awareness of digital
financial risks strengthening the protection of retail investors and
enhancing education on risk prevention and investor rights. Through
coordinated efforts across diversified channels it promoted financial
literacy and risk awareness supporting investors worldwide in
making rational and informed decisions in the digital finance era.Commitment to Shareholder Returns The Company places strong emphasis on the protection of investor rights and aligns with regulatory requirements and global initiatives in this area. It
maintains strict compliance in its operations and adheres to the principles of truthfulness accuracy completeness timeliness and fairness in information
disclosure. At the same time the Company maintains open and effective communication channels with investors and proactively communicates its corporate
The Company places strong emphasis on delivering value to its investors and is committed value and development outlook. It has also implemented share repurchase programs to demonstrate confidence in its long-term value and reinforce its
to providing sustained stable cash dividends. By consistently sharing the Company’s commitment to investor protection. Through these efforts the Company promotes rational and long-term investment behavior and safeguards the legitimate
operational results with shareholders it seeks to enhance their sense of participation rights and interests of retail investors.in the Company’s growth. The Company strictly complies with applicable laws and
regulations including the Company Law of the People’s Republic of China the Securities The Company’s governance practices extend beyond the four areas outlined above. It continues to strengthen the independent operation of the Board and
Law of the People’s Republic of China and the CSRC’s No. 3 Guideline for the Supervision shareholders’ meeting enhance its internal control systems refine mechanisms for investment and financing decisions and improve its shareholder return
of Listed Companies – Cash Dividend Distribution of Listed Companies in formulating and framework. These practices are continuously reviewed and implemented in accordance with the Company’s operational needs and applicable legal and
implementing its profit distribution policies. regulatory requirements.In 2025 the Company implemented both the 2024 annual profit distribution and the 2025 Our vision is “To be the leading enterprise in the global pet food industry” - a goal that continues to guide our development. As the pet economy expands
interim profit distribution with total cash dividends amounting to RMB 106187441.45 (tax into a vast blue ocean the Company is well-positioned to chart an even broader course backed by robust governance strong foundations and proven
inclusive). operational capabilities.2025 ESG REPORT YANTAI CHINA PET FOODS 63 / 64
4·Standardized Internal Control Framework
5·Fulfilling Tax Obligations with Responsibility
In the course of its daily operations the Company is exposed to a dynamic business environment and various uncertainties. To
mitigate the risk of occupational fraud - whether from internal personnel or external partners - and to safeguard the interests of the
Company and its shareholders the Company formally joined the China Enterprise Anti-Fraud Alliance in February 2022 and became The Company recognizes the vital role of tax compliance in supporting national governance and social progress.a member of its Working Committee. The Alliance is a non-profit organization committed to fostering a clean business environment Guided by the Enterprise Income Tax Law of the People’s Republic of China the Company has put in place a
through platform collaboration resource integration and data sharing. It helps establish workplace misconduct records and dedicated Tax Management Policy. In day-to-day operations it maintains strict oversight over tax-related processes
enhances its members’ anti-fraud capabilities. Founding members include industry leaders such as Alibaba Country Garden Midea - from invoice control to account reconciliation - ensuring every step is handled with rigor and consistency. At the
SF Express and Vanke. same time the Company continues to refine its tax planning framework balancing short-term arrangements and
long-term strategic considerations to optimize tax management comprehensively.Today the Alliance comprises more than 950 member companies over half of which are A-share listed firms. It offers services such
as resource pooling blacklist sharing and support for cross-regional fraud investigations. Joining the Alliance marks an important
step in China Pet Foods’ ongoing efforts to strengthen risk management improve fraud prevention mechanisms and protect The Company remains alert to potential risks and has established a sound system for monitoring and managing tax-
the legitimate rights and interests of the Company and its shareholders. As a leading enterprise in China’s pet food industry the related matters ensuring its operations remain stable and compliant. Committed to fulfilling its tax obligations in full
Company is committed not only to business excellence but also to fostering a clean honest and transparent operating environment. and on time China Pet Foods provides solid support for the stable growth of national fiscal revenues - contributing
Through cross-industry collaboration and knowledge-sharing the Company aims to fulfill its broader social responsibilities while to public investment in infrastructure social welfare and technological innovation. Through concrete actions
supporting healthy and rapid growth. the Company brings its corporate responsibility to life helping to drive high-quality economic growth and social
harmony while underscoring its value as a corporate citizen in advancing national strategies and serving the broader
good.In 2025 the Company and its subsidiaries contributed over RMB 120 million in taxes.Internally the Company has implemented a range of anti-fraud measures including the Anti-Fraud Management
Policy Whistleblower Protection and Incentive Policy and Policy on the Reporting of Gifts and Monetary Benefits - fostering a
robust institutional firewall against misconduct and reinforcing a culture of integrity. To further embed anti-fraud awareness and
guide employee day-to-day behavior visual reminders are displayed throughout the Company. These include the Ten Integrity
Guidelines in office areas the Bid Opening Code of Conduct at tender sites and whistleblowing posters at exit and entry points
across all facilities. Collectively these measures help strengthen employee vigilance against fraud and bribery and support a
corporate culture anchored in ethical conduct. In doing so the Company continues to lay the foundation for sound compliant and
high-quality growth.In addition the Company places strong emphasis on internal audit and has steadily advanced a comprehensive internal audit
framework. In 2025 the internal audit department carried out a range of routine and special audit projects in an orderly manner:
(i) A special audit of the safety production function focusing on the design and effectiveness of key processes such as safety
management fire safety management and occupational health management with a view to identifying process gaps and
management risks; (ii) A special audit of the human resources function reviewing the organizational structure and execution of
responsibilities and assessing the clarity of role allocation the appropriateness of functional positioning and the effectiveness
of the organizational structure in supporting business operations; (iii) Special audits of overseas subsidiaries and the supplier
management function focusing on overseas operational control compliance management supplier admission processes and
risk management across the full cooperation lifecycle with potential issues identified and corrective recommendations provided.Through ongoing and comprehensive internal audit oversight the Company continues to enhance its internal control system
strengthen refined management practices and ensure that its operations are conducted in a compliant and prudent manner.2025 ESG REPORT YANTAI CHINA PET FOODS
2025 ESG REPORT YANTAI CHINA PET FOODS 65 / 662025 ESG REPORT YANTAI CHINA PET FOODS 67 / 68
In 2025 the Company continued to make steady progress towards
its carbon neutrality goals driving long-term value creation through
The Company consistently upholds the principles of green development and actively fulfils its environmental responsible practices.responsibilities. It strictly complies with national environmental laws and regulations integrates environmental
protection into its operations and continuously enhances its environmental management system. The Company
actively promotes energy conservation emissions reduction and resource recycling taking concrete actions
to support China’s carbon peaking and carbon neutrality goals contribute to ecological progress and achieve
sustainable development in harmony with the environment. 51 / 52
1·Environmental Compliance
and Management System Implementation
The Company strictly complies with applicable environmental laws and regulations including the Environmental
Protection Law of the People’s Republic of China the Environmental Impact Assessment Law of the People’s Republic China Pet Foods Intelligent Energy Management Platform
of China and the Water Pollution Prevention and Control Law of the People’s Republic of China. It has established a
comprehensive environmental management system and successfully obtained ISO 14001 certification. Environmental
requirements are integrated throughout the entire production and operational process ensuring standardized and
systematic environmental management at the institutional level. The Company continuously improves resource End-to-End Wastewater Management
efficiency actively promotes cleaner production and ensures that all environmental practices are implemented in full
compliance with regulatory requirements. To ensure compliant wastewater discharge the Company has constructed three fully enclosed wastewater treatment
plants with treatment capacities of 1500 tons/day 500 tons/day and 100 tons/day forming a comprehensive
wastewater treatment infrastructure. The Company has engaged qualified third-party operators for plant operations
with dedicated personnel on duty 24 hours a day and wastewater treatment engineers providing daily on-site
Environmental Impact Assessment and Emissions supervision to ensure the stable and efficient operation of the treatment systems. Wastewater is treated using an
advanced AOAO process. After treatment effluent meets the applicable standards under the Discharge Standard of
The Company places strong emphasis on environmental compliance in new project development. All new projects are Wastewater into Municipal Sewers (GB/T 31962-2015 Table 1A) before being discharged into the municipal sewer
subject to environmental impact assessments in strict accordance with applicable laws and regulations including the network for further treatment at downstream facilities.Environmental Impact Assessment Law of the People’s Republic of China and the Regulations on the Administration
of Environmental Protection for Construction Projects. In 2025 all four newly constructed projects successfully The Company has established standardized sampling points at wastewater discharge outlets and installed online
obtained the required environmental approvals from the relevant authorities. During project development the monitoring systems for key indicators including COD ammonia nitrogen total phosphorus total nitrogen pH and
Company adopts environmentally friendly equipment with low energy consumption and high treatment efficiency flow rate. All monitoring equipment is connected to the relevant environmental authorities enabling real-time
to minimize environmental impact at source. At the same time it strictly complies with the Regulations on the data transmission. In addition the Company regularly engages qualified third-party institutions to conduct data
Administration of Pollutant Discharge Permits and has established a full-process control mechanism for pollutant verification and calibration of the online monitoring systems ensuring the accuracy and reliability of monitoring data.emissions. This ensures that both emission concentrations and total discharge volumes meet regulatory requirements These measures enable precise monitoring of wastewater treatment performance and support the protection of the
enabling standardized and refined management of pollutant emissions. aquatic environment.2025 ESG REPORT YANTAI CHINA PET FOODS 69 / 70
2·Advancing Clean Energy Initiatives to Support Dual Carbon Goals
Multi-Dimensional Air Emissions
In response to China’s carbon peaking and carbon neutrality strategies and in line with the requirements of the
The Company manages air emissions in strict compliance with applicable standards including the Boiler Air Pollutant Guidelines on Fully and Faithfully Implementing the New Development Philosophy to Achieve Carbon Peaking and
Emission Standard (GB 37/2374-2018) the Integrated Emission Standard of Air Pollutants (GB 16297-1996) and Carbon Neutrality the Company integrates its carbon reduction targets with cost efficiency initiatives and actively
the Emission Standard for Odor Pollutants (GB 14554-1993). It adopts a multi-dimensional approach to emissions invests in solar photovoltaic (PV) projects. By expanding the use of clean energy the Company is driving the
control covering energy selection process optimization and end-of-pipe treatment. For steam generation the optimization of its energy mix.Company uses clean fuel (natural gas) and applies low-nitrogen combustion technology to reduce air pollutant
emissions at source and during production processes. In certain facilities in-house boilers have been phased out and The Company has completed two phases of solar PV projects with a total installed area exceeding 30000 square
replaced with externally sourced steam to further reduce emissions. meters and a combined installed capacity of 3.6 MWp. Since commencing operation in 2021 the projects have
For odorous gases generated from wastewater treatment facilities enclosed collection systems are used followed by generated a cumulative total of 13.41 million kWh of electricity equivalent to a reduction of more than 11000 tons
treatment through water scrubbing and UV oxidation processes to ensure compliant discharge. The Company also of carbon dioxide emissions. These initiatives have delivered tangible results in reducing reliance on conventional
manages organized and fugitive emissions separately deploying high-efficiency treatment equipment to enhance energy sources and lowering carbon emissions providing strong support for the Company’s green development and
overall emissions control performance. In accordance with applicable technical guidelines for self-monitoring the
Company regularly engages qualified third-party institutions to conduct emissions testing. During the reporting
period all air emission indicators met national standards ensuring full compliance.Lifecycle Solid Waste Management
Guided by Xi Jinping Thought on Ecological Civilization the Company adheres to sustainable development principles
and has established a lifecycle-based solid waste management system centered on waste reduction resource
recovery and safe disposal. It has developed comprehensive policies and procedures for the prevention and control
of solid waste pollution and promotes green procurement of raw materials to minimize waste generation at source.General industrial solid waste and hazardous waste generated during production are handled and disposed of by 3·Green Materials and Packaging Transformation
qualified third-party service providers in compliance with applicable regulations. This ensures a “cradle-to-grave” full
The Company upholds its commitment to environmental responsibility in raw material selection and actively
lifecycle management of waste.promotes sustainable practices. In response to the environmental challenges associated with conventional packaging
materials—such as pollution difficulty in material separation and limited recyclability—the Company has undertaken
For municipal solid waste the Company has implemented waste segregation within its facilities by installing classified
initiatives to upgrade its packaging materials including the adoption of biodegradable composite materials in
waste bins and establishing a regular collection and disposal mechanism in cooperation with local sanitation
selected products.authorities ensuring daily collection and safe disposal. The Company also promotes green office and dining practices
including the “Clean Plate” initiative the use of reusable tableware and the standardized disposal of food waste. In These materials offer significantly improved degradability and
addition the Company strictly complies with regulatory requirements by reporting detailed information on hazardous recovery potential. These initiatives help reduce environmental impact
waste—including categories volumes storage transfer and disposal—through the Shandong Solid Waste and at the packaging stage and support the transition towards more
Hazardous Chemicals Management Platform enhancing the digitalization and transparency of waste management. sustainable packaging materials. The development and application
In 2025 in recognition of its comprehensive waste management system and effective implementation the Company of environmentally friendly packaging represent an important step in
was awarded the “Zero-Waste Factory” title by the Yantai municipal authorities. fulfilling the Company’s environmental responsibilities and advancing
green transformation across the value chain.Saturated Steam Tank Container Energy Efficiency Project
In 2025 the Company implemented a saturated steam tank container project to enhance energy efficiency and
environmental performance. Leveraging specialized tank container equipment the project establishes an efficient
and environmentally friendly steam supply model. The system utilizes industrial waste heat from upstream sources—
such as thermal power plants heating providers and steel producers—as its primary energy source converting it
into saturated steam for transport via tank containers enabling flexible distribution and utilization. This approach not
only enables the recovery and monetization of waste heat resources but also contributes to energy conservation
emissions reduction and cleaner production.2025 ESG REPORT YANTAI CHINA PET FOODS 71 / 72
Diverse Environmental Awareness
To further enhance employees’ environmental
awareness and foster a culture of wide participation
in environmental protection the Company organizes
4·Environmental Capacity Building a range of environmental awareness activities often aligned with key environmental observances. On World
and Awareness Raising Environment Day (5 June 2025) the Company organizeda series of activities in support of the theme “Building aRegular Environmental Training Beautiful China Starts with Me”. These activities included
raising awareness of the origins and significance
of World Environment Day sharing environmental
knowledge and promoting environmental initiatives
encouraging employees to adopt green development
principles and actively participate in the Company’s
environmental efforts and broader ecological protection
activities.Standardized Emergency Preparedness and Drills
To strengthen its response to environmental incidents and enhance its emergency response capabilities the
Company has developed comprehensive environmental emergency response plans which have been duly filed with
the relevant environmental authorities. Environmental emergency drills are integrated with occupational health and
safety (OHS) drills with regular exercises conducted for scenarios such as hazardous waste leaks and fire incidents.This approach ensures effective alignment and coordination between environmental and safety emergency plans.Through practical drills the Company enhances employees’ response capabilities ensuring that environmental
incidents can be handled promptly effectively and in accordance with established procedures thereby minimizing
potential environmental impact.Transparent Environmental Information Disclosure
To strengthen the foundation of its environmental management and fulfil its responsibilities for environmental The disclosure of environmental information in accordance with regulatory requirements is an important means of
protection the Company has established a regular environmental training program. It organizes periodic training subjecting the Company to public oversight and improving environmental management. In line with the Measures for
sessions covering key topics such as environmental laws and regulations identification and mitigation of the Administration of Legal Disclosure of Environmental Information by Enterprises issued by the Ministry of Ecology
environmental risks and the processes and standards for the treatment of air emissions wastewater and solid and Environment the Company has established a standardized environmental information disclosure mechanism.waste. Through systematic training the Company enhances employees’ environmental knowledge and sense of It publishes key environmental information on its official website on an annual basis including corporate profile
responsibility strengthening its internal capabilities for sustainable development and embedding environmental environmental management systems pollutant generation treatment and emissions as well as environmental
principles across all functions and operational processes. emergency management. These disclosures ensure the accuracy timeliness and transparency of environmental
information subject the Company’s environmental practices to public oversight and support the continuous
improvement of its environmental management.2025 ESG REPORT YANTAI CHINA PET FOODS 73 / 742025 ESG REPORT YANTAI CHINA PET FOODS 75 / 76
Labor Rights Environmental Protection
1.Carbon Emissions and Climate Action Fair Compensation and Working Hours: American Pollutant Emission Control: The Company
Jerky ensures that all employees receive fair maintains strict control over pollutant emissions
Carbon Neutrality Goals: In response to climate change American Jerky has set clear targets compensation and work reasonable hours in full and discharges across all stages of production
for carbon neutrality. The facility is constructed using high-performance insulation materials compliance with international labor standards. The ensuring that all discharge levels remain well below
1·U.S. Facility to minimize thermal exchange and energy loss. Rooftop solar panels generate clean energy Company strictly prohibits child labor and forced labor. regulatory limits and minimizing the impact on the significantly reducing carbon emissions. The facility also conducts regular energy audits and Protection of Employee Rights: The Company surrounding ecosystem.
continuously improves energy efficiency aiming to lower its carbon footprint through ongoing prioritizes employee welfare and provides a safe Commitment to Green Development: Guided by
conservation efforts. supportive working environment. A robust labor policy a philosophy of green production we continuously
As a leading producer of pet treats American Jerky takes its social responsibility Green Production Facility: The plant has invested in energy-efficient machinery and optimized framework and comprehensive training system are in refine our environmental practices to reduce the
seriously and remains firmly committed to environmental compliance and sustainable its manufacturing processes to reduce energy consumption. Partial reliance on renewable place to ensure employees' rights are respected and Company’s ecological footprint and promote
energy supports the goal of building a low-impact environmentally responsible production
development. Through a range of innovations and best practices it works to reduce the upheld. greener operations.base.environmental footprint of its operations and contribute to the green transformation of
Health and Safety Business Ethics the industry. and Transparency
2.Waste Management and Resource Recovery
Safe Working Environment: The Company is Anti-Corruption Policy: We have established
Waste Sorting and Recycling: The facility enforces a strict waste classification policy. All committed to providing employees with a clean safe a comprehensive anti-corruption framework to
production waste is sorted and recycled by category to maximize resource utilization. and well-equipped working environment. Modern ensure transparency in all business dealings
Recyclable Packaging Materials: Packaging is designed with efficiency in mind - minimizing protective equipment is in place and employees receive upholding principles of fairness integrity and
unnecessary materials using environmentally friendly and recyclable options. American Jerky regular training on health and safety practices to ensure regulatory compliance.encourages suppliers to adopt recycled content actively reducing single-use packaging across they are prepared to manage potential risks. Supply Chain Transparency: We are committed to
the supply chain. Health Monitoring and Protection: In addition to maintaining transparency across our supply chain.Circular Economy in Practice: By partnering with recycling firms American Jerky ensures that routine safety measures the Company conducts regular Regular supplier assessments are conducted to
all recoverable materials are effectively recycled and reused reducing dependence on natural occupational health checks to safeguard employee ensure alignment with sustainability standards and
resources. well-being and promote long-term health. to promote best practices within the industry.
3.Water Resource Management Green Supply Chain and Raw Material Safety & Sustainability
1. Raw Material Procurement Standards
Efficient Water Use: American Jerky continues to improve water efficiency by optimizing
Strict Supplier Screening and Certification: All suppliers must meet both international and national food safety
production schedules and adopting high-efficiency low-consumption cleaning equipment. For
standards with particular attention to the specific requirements of pet food safety. We work exclusively with
landscaping the facility uses drip irrigation systems to minimize unnecessary water use.certified partners to ensure that all raw materials are clean additive-free and safe for animal health.Wastewater Treatment and Water Resource Protection: The plant is equipped with advanced
Sustainable Sourcing Policy: The facility gives priority to sourcing raw materials from farms and production sites
wastewater treatment facilities that ensure all discharged water meets or exceeds the standards
that meet environmental standards align with sustainable development requirements and are certified under
set by the U.S. Environmental Protection Agency (EPA) and applicable state regulations. These
the Marine Stewardship Council (MSC) sustainable fisheries program.measures help prevent contamination of surface and groundwater in full compliance with strict
2.Raw Material Traceability System
environmental laws.End-to-End Traceability: All raw materials are fully traceable through a dedicated tracking system that records
Wastewater Monitoring: Regular monitoring is conducted to assess wastewater quality.each batch from procurement and transport to final use. This ensures transparency of origin and full compliance
Discharge metrics are compared against California and other state-level environmental
with sourcing standards. In the event of any quality concerns the system allows for rapid tracing back to the
standards with operational adjustments made as needed to prevent environmental risk and
source - minimizing potential food safety risks.uphold regulatory compliance.Ingredient Safety Control: All incoming raw materials undergo rigorous testing for multiple safety indicators
including heavy metals and pesticide residues to ensure both regulatory compliance and product safety.
3.Animal Welfare and Ethical Slaughter
Animal Welfare Certification: We work exclusively with certified slaughterhouses that meet recognized animal
welfare standards. These facilities ensure that all animals are handled humanely and in environmentally
responsible ways minimizing unnecessary suffering and reducing stress during transport.Animal Welfare Program: A stringent supplier auditing and certification process is in place to ensure that all
partners adhere to best practices in animal welfare throughout their operations.
4.Food Safety and Quality Control System
Global Food Safety Certification: The American Jerky facility is certified under internationally recognized food
USDA Certification safety standards such as the BRC Global Standard Food Safety ensuring that all products meet rigorous food
safety requirements across global markets.HACCP and GMP Systems: The facility fully implements the Hazard Analysis and Critical Control Points (HACCP)
system and is certified under Good Manufacturing Practices (GMP) guaranteeing that every stage - from raw
material sourcing to final production - complies with international food safety standards.2025 ESG REPORT YANTAI CHINA PET FOODS 77 / 78
2·Canada Facility
Through a structured approach across four key areas the Canada facility transforms regulatory compliance into
a source of competitive advantage creating a multidimensional brand value centered on safety ethics natural
ingredients and low-carbon operations. This provides strong support for the Company’s sustainability positioning in
consumer-facing markets.Food Safety and Quality Employee Welfare and Wellbeing
The Canada facility has obtained a series of internationally recognized certifications and building on this The Canada facility strictly complies with applicable labor laws and regulations including WorkSafeBC
foundation established a robust system to ensure end-to-end compliance in food safety and quality requirements and has established comprehensive remuneration and benefits as well as occupational
management. health and safety (OHS) management systems. The Company places strong emphasis on employees’
working conditions career development and physical and mental wellbeing. In terms of compensation
All core suppliers are certified under the Global Food Safety Initiative (GFSI) including standards such as the and benefits the Company provides statutory social insurance contributions and paid leave including
Global Standard Food Safety (BRC) going well beyond basic Good Agricultural Practices (GAP) requirements to five days of paid sick leave per year as well as communication allowances to support effective work.ensure global compliance from sourcing to production. To ensure workplace safety employees in production areas are provided with and required to wear
appropriate personal protective equipment (PPE) and workwear which are regularly cleaned and
The Canada facility has achieved the highest rating (AA+) under the BRC certification scheme and undergoes replaced. Monthly safety inspections are conducted with formal reporting mechanisms in place to
regular Sedex SMETA audits covering social responsibility and ethical practices including labor rights health identify and address potential risks in a timely manner.and safety business ethics and environmental management. The Company strictly complies with applicable
Canadian laws and regulations and works closely with regulatory authorities such as the Canadian Food The Company also promotes employee wellbeing and team cohesion through structured care
Inspection Agency (CFIA) to ensure that its operations meet food safety and regulatory requirements. programs including financial assistance for employees facing exceptional personal circumstances
as well as regular engagement activities such as mid-year and year-end gatherings quarterly
These certifications support access to global supply chains and enhance the Company’s reputation and refreshments and Christmas prize draws to strengthen team cohesion. In addition the Company
competitiveness. By streamlining management processes and reducing duplication in audit requirements the provides ongoing training on equipment operation safety procedures and the proper use of PPE Food Safety Carbon Neutrality
facility has strengthened its integration into global supply networks reinforcing customer trust and serving as a maintains insurance coverage through WorkSafeBC and ensures the proper maintenance of office and and Quality
strategic driver of both sustainable development and long-term business growth production facilities to safeguard employee rights and workplace safety. and Sustainable
Sustainable Supply Chain and Raw Material Integrity Carbon Neutrality and Sustainable
The Company works closely with certified suppliers to ensure that raw materials meet stringent quality The Canada facility actively supports carbon neutrality goals including working with suppliers
and safety standards safeguarding product integrity at source. In addition the facility has established a to implement net-zero emissions programs. Its production processes fully comply with Canada’s
comprehensive anti-corruption framework to ensure transparency in all business transactions and adheres to Environmental Protection Act and the 2030 Emissions Reduction Plan. With measures such as
principles of fairness integrity and compliance in its operations. waste-to-resource initiatives and optimized low-carbon logistics the plant maintains a carbon
footprint well below industry averages. Wastewater and exhaust emissions are treated in
accordance with applicable standards with discharge levels significantly below legal limits. Employee Welfare
and Wellbeing Sustainable Supply
Chain and Raw
Material Integrity2025 ESG REPORT YANTAI CHINA PET FOODS 79 / 80
3·New Zealand Facility
Rooted in the philosophy of living in harmony with nature the New Zealand facility builds differentiated sustainable
competitiveness through three core pillars: animal welfare low-carbon production and community engagement. The
goal is to provide consumers with products that deliver both ethical value and high-quality assurance.Animal Welfare Environmental Community
and Grass-Fed Management Engagement and
Certification and Resource Fair Practices
The facility adheres to some of the world’s highest animal welfare The New Zealand facility employs an industrial-grade closed- The facility strictly complies with New Zealand’s
standards. All cattle and sheep are grass-fed and free-range year-round loop water recycling system achieving a water-saving rate of Employment Relations Act and Health and Safety
on open pastures in compliance with the New Zealand Farm Assurance over 70% - setting a benchmark for water management in the at Work Act ensuring fair wages mandatory safety
Programs (NZFAP) requirements for grass-fed livestock. Pasture global meat processing sector. The carbon footprint of red training and provision of personal protective
resources are sustainably managed and animals follow a natural grain- meat production in the New Zealand facility is significantly equipment (PPE). Employees are encouraged to
free diet. lower - 30% to 50% below the global average - thanks to the participate in external skill-building programs such
selective breeding of low-methane sheep and the carbon as the Good Yarns workshops and are supported in
New Zealand is also among the countries with the lowest antibiotic sequestration of pasture-based grazing. Low stocking developing interests outside of work. Firmly rooted
usage globally where therapeutic antibiotics are administered only densities rotational grazing practices and strict nitrate in the local community the facility donates pet food
under veterinary supervision. The facility meets the Gold Standard for management further support the facility’s environmental products regularly to animal welfare organizations
Animal Health and Welfare under NZFAP Plus and complies with animal performance effectively reducing nitrate runoff and operates an on-site shop offering exclusive discounts
welfare standard jointly endorsed by NZFAP Plus and British Veterinary protecting water quality. In terms of clean energy the newly for residents and prioritizes sourcing raw materials
Association (BVA). These practices ensure livestock are raised in a natural commissioned facility is set to be equipped with a solar from local farmers - reinforcing its commitment to MPI ED Traceability System Supplier Qualifications
environment – resulting in healthier meat. (Grass-fed beef and lamb for photovoltaic system to further cut emissions. social responsibility and contributing to regional
instance are known to contain higher levels of Omega-3 fatty acids.) economic development.Meanwhile its packaging system is built on a closed-loop
Full traceability is enabled through the Ministry for Primary Industries’ recycling model effectively reducing waste and driving
ED System which records data across the entire supply chain - from progress toward zero-waste operations.pasture and raw material transportation to processing and export.Product information is publicly accessible via official websites. All major
meat suppliers are NZFAP Plus members and are certified under schemes
including SMETA FSSC BAP and ISO 14001. The facility regularly
discloses details on production processes waste treatment andcommunity supporting programs - fulfilling its commitment to “traceableto the slaughterhouse transparent to the consumer” and meeting
global customers’ expectations for quality ethics and environmental
responsibility.2025 ESG REPORT YANTAI CHINA PET FOODS 81 / 82
4·Mexico Facility
Corporate Governance
The Company upholds high standards in operational management continuously strengthening its quality management systems
and enhancing upstream supply chain controls to ensure standardized and compliant operations supported by multiple
recognized certifications.Certification and Compliance: The Company has successfully obtained GMP certification and passed annual government
inspections relating to animal-origin controls. It has also achieved a BRCGS Grade B certification and completed regulatory audits
required for exports to the United States. Overall its operational management meets both industry and international standards.Upstream Supply Chain Control: The Company places strong emphasis on quality control at the sourcing stage prioritizing
organic raw materials and natural additives. All suppliers are subject to rigorous selection and approval processes in line with
regulatory requirements in both the United States and Mexico. Meat suppliers in particular are required to hold recognized
certifications such as TIF certification BRCGS certification and GMP quality management certification ensuring product quality is
safeguarded at source.Employee Care and Wellbeing
Fire Safety Training for Employees First Aid Training for Employees
The Company strictly complies with applicable local labor laws and regulations safeguarding employees’ legitimate rights and
interests. Building on statutory protections it has established a diversified employee benefits and training framework fostering a 2025 ESG REPORT
supportive and inclusive working environment.Statutory Protections: In accordance with local requirements the Company provides statutory social insurance coverage including
pensions medical unemployment work injury and maternity insurance as well as applicable housing funds. Employees are
entitled to statutory public holidays and paid annual leave and overtime is compensated in compliance with legal requirements
alongside the implementation of relevant labor protection measures. The Company maintains a zero-tolerance policy towards
child labor and illegal employment.Additional Benefits: Beyond statutory benefits the Company provides supplementary support such as commercial medical or Earthquake Evacuation Drills for Employees Company Christmas Party International Women’s Day
group insurance regular health check-ups meal provisions or allowances and transportation-related benefits. It also offers
festive benefits during traditional holidays including New Year Christmas Día de los Muertos and Three Kings’ Day and organizes
regular team-building activities. Environmental Performance
Comprehensive Training Framework: The Company has established a lifecycle training framework covering both new and existing The Company places strong emphasis on green and low-carbon development integrating environmental requirements throughout the operations of its Mexico facility
employees. For new hires induction programs include corporate culture internal policies and procedures workplace safety and and industrial park. The facility operates a closed-loop water management system achieving 100% water recycling. All wastewater is connected to the industrial
role-specific skills alongside practical safety training such as earthquake evacuation and fire protection drills enabling smooth park’s pipeline network enabling treatment and reuse within a fully integrated system. In terms of emissions management the facility has passed inspections by local
onboarding. For existing employees the Company provides ongoing internal training in technical skills management capabilities authorities with boiler air emissions and annual wastewater testing meeting applicable local standards. It has also obtained the required environmental operating
and professional knowledge supplemented by external training delivered by qualified experts or institutions supporting permit issued by the Mexican government. To improve energy efficiency and reduce emissions the facility incorporates high-efficiency ventilation within its existing
continuous professional development. structures utilizing natural air circulation for cooling. This allows for a comfortable working environment during summer months without reliance on air conditioning
thereby reducing both energy consumption and carbon emissions.Employee Care and Engagement: The Company promotes employee wellbeing through a range of engagement and care
initiatives. These include birthday celebrations festive activities such as International Women’s Day and Three Kings’ Day as well
as Christmas parties and annual team-building events to strengthen team cohesion. A structured employee support mechanism
is also in place providing assistance to employees in need including visits to those who are unwell support for significant life
events and targeted assistance for employees facing financial or personal difficulties.2025 ESG REPORT YANTAI CHINA PET FOODS 83 / 842025 ESG REPORT YANTAI CHINA PET FOODS 85 / 86
People First United in Purpose
The figures speak for themselves: nearly 20% of employees have been with the Company for over ten years
and close to 40% for more than five. In an industry characterized by high staff turnover such stability reflects 2·Compensation and Promotion Policies
an underlying strength that supports the Company through changing cycles. China Pet Foods recognizes
that people are central to its long-term success. Alongside competitive benefits the Company places strong
emphasis on employee development — from onboarding programs to professional training from internal
promotion pathways to equity incentive schemes. Employees are also encouraged to bring their pets to work
fostering an inclusive and supportive workplace culture. This shared sense of commitment built over time may
prove more resilient than any formal strategy in navigating an uncertain future.
1·Workforce Overview
During the reporting period the Company strictly adhered to the Labor Contract Law and other applicable national
laws and regulations in implementing its employee compensation policies. The Company established compliant
systems for social insurance and housing fund contributions and developed a wage structure based on job roles and
skill levels. It also implemented a performance-based incentive mechanism designed to enhance employee welfare
while ensuring internal equity. With compensation as the cornerstone the Company fosters a working environment
that balances efficiency and fairness - encouraging motivation stability and individual initiative.Employees are supported in realizing their professional potential and personal value. Staying true to its people-
oriented philosophy China Pet Foods remains committed to aligning human capital development with enterprise
growth enabling employees to realize their personal value and thrive together with the Company as it continues its
rapid growth.Based on the varying roles functions and development needs across departments the Company prepares an annual
training plan tailored to its workforce. Training formats include in-house sessions external programs onboarding
training promotion-focused workshops reading initiatives and sessions led by part-time trainers. Covering areas
such as management technical skills professional conduct workflow and corporate culture the program is designed
to foster a highly skilled and professional workforce.2025 ESG REPORT YANTAI CHINA PET FOODS 87 / 88
3·Occupational Health and Safety Fire Safety Drills
In 2025 the Company remained committed to a “safety first prevention-oriented and comprehensive management”
approach placing occupational health and safety at the core of its ESG priorities. It fully implemented its safety
responsibilities and established a management system characterized by organization-wide participation end-to-
end process control and comprehensive coverage with the aim of preventing incidents and safeguarding employee
wellbeing and stable operations.The Company has further strengthened its occupational health and safety management system by revising
and enhancing key policies including the Safety Committee Charter. Responsibilities are clearly defined across
departments and roles with accountability assigned at all levels. This has resulted in a structured framework led by Emergency Response Training Firefighting Equipment Use
senior management coordinated by dedicated safety teams and supported by all business units with participation
across the workforce. Dedicated full-time and part-time safety personnel are in place to carry out routine inspections To strengthen fire safety awareness and emergency response capabilities the Company conducted regular fire
identify and address potential hazards and provide training and guidance ensuring the effective implementation of drills throughout 2025 with the aim of preventing and effectively responding to fire-related incidents. Drill plans
safety management measures. were properly developed in line with operational conditions with clearly defined procedures roles and emergency
The Company has established a routine hazard response steps to ensure effective and orderly execution.identification and inspection mechanism for
key roles and high-risk areas across production A total of 131 emergency drills were conducted during the year including 18 fire drills with participation covering the
operations including workshops warehouses entire workforce. This ensured full coverage across all sites and functions. Prior to each drill the safety management
and power distribution rooms. A combination team provided training on hazard identification the use of fire extinguishers fire hydrant operation procedures and
of daily inspections targeted checks quarterly evacuation and escape techniques ensuring that employees are equipped with essential fire safety knowledge and
reviews and self-inspections at the workshop emergency response skills.level is applied to assess equipment safety
electrical safety operational procedures and the Safety Training
adequacy of protective measures. A centralized
register of identified hazards is maintained
with clear assignment of responsible personnel
corrective actions and timelines. A closed-loop
management approach is adopted to ensure
that risks are identified addressed and resolved
in a timely manner. In 2025 the completion
rate for corrective actions on identified hazards
reached 100%.Back-to-Work Safety Training Online Safety Learning
In 2025 the Company placed safety training at the core of its efforts to strengthen safety management and
enhance workforce safety awareness. Guided by the principles of full participation needs-based training and
practical effectiveness it delivered training programs on a regular and systematic basis. An annual training plan
was developed in line with operational needs covering safety regulations internal policies hazard identification
fire safety and emergency response as well as practical skills. Case studies of incidents were incorporated to
reinforce risk awareness. For new employees a combination of pre-job safety training and on-the-job mentoring
was implemented. Training was delivered through a flexible approach combining hands-on practice with online
learning modules to ensure effectiveness. During the year a total of 30 safety training sessions were conducted
with cumulative training hours reaching 12622. Both the completion rate for online training and the pass rate for
assessments were 100%. These efforts have significantly enhanced employees’ safety awareness and emergency
response capabilities providing a strong foundation for safe and stable operations.2025 ESG REPORT YANTAI CHINA PET FOODS 89 / 90
Empowering Performance and Driving Efficiency — Team Leader Development Program
4·Professional Skills Development
People are the Company’s most valuable asset. China Pet Foods actively promotes a culture of lifelong learning to
help employees adapt to a rapidly evolving market environment and increasing competitive demands. To support
this the Company has established structured systems and programs to facilitate employee development and
progression. Guided by the belief that “lean begins with mindset and improvement starts with each individual” the
Company fosters an environment of learning and innovation and regularly organizes internal training initiatives
including ““Smart Classroom Lean Management” sessions.China Pet Foods 2025 “Departure Flights” Program
Spark Program — Internal Trainer Development Camp
Masterclass Series2025 ESG REPORT YANTAI CHINA PET FOODS 91 / 92
5·Employee Representative Conference
China Pet Foods embraces the philosophy of democratic management and active employee participation. The
Company regularly convenes employee representative conferences conducted in line with formal procedures.These meetings provide a structured forum to discuss key issues ranging from business strategy and operational
management to employee rights protection and corporate culture. Representatives are encouraged to speak on
behalf of the wider workforce - bringing forward their thoughts concerns and needs and helping turn collective
insight into a meaningful force that drives the Company forward.
6·Employee Benefits
The Company recognizes every important occasion throughout the year including New Year the Spring Festival
the Lantern Festival the Dragon Boat Festival and International Women’s Day offering thoughtful benefits and
organizing themed activities to foster a strong sense of belonging and reinforce its corporate culture. Seasonal
gifts such as festive treats (e.g. traditional rice dumplings and sweet rice balls) flowers and cakes provide small
but meaningful gestures of appreciation bringing a sense of warmth and care to employees in their daily work and
embedding the Company’s culture into everyday experience.Beyond public holidays the Company also organizes a range of cultural and recreational activities including family
outings anniversary celebrations and mini marathons. These initiatives help strengthen connections between
employees and their families while fostering a stronger sense of belonging and identification with the Company.Together these efforts create a positive and engaging working environment enabling employees to perform at
their best and supporting the Company’s people-first approach. By fostering a family-like and inclusive workplace
culture the Company aims to ensure that employees find both fulfilment and a sense of achievement in their work
contributing with confidence and commitment to its continued development.2025 ESG REPORT YANTAI CHINA PET FOODS 93 / 94
25 Years of Uninterrupted Service Commendation Commendation for the Practice of Core Values
Tough Project Award & Collaboration Award & Innovation & Lean Award Gold Sales Award
中宠股份创始人、董事长郝忠礼先生现场致辞
7·"Gathering Strength Embracing New Beginnings"
2025 Annual Recognition Ceremony and Gala
As the year turns a new chapter begins. In January 2026 the Company held its 2025 Annual Recognition Ceremony
and Gala at the Yantai International Expo Center. The event brought together the Company’s founder and Chairman
Hao Zhongli senior management and employees from across its global operations to reflect on the past year’s 最佳开拓奖 最具成长力新人奖
achievements recognize outstanding contributions strengthen alignment and set the direction for the year ahead.During the event a total of 206 individuals and 59 teams were honored for their performance in 2025. Among them
were frontline production staff demonstrating operational excellence business teams driving market expansion
and professionals across R&D quality supply chain and support functions who made sustained contributions to the
Company’s development. Each recognition reflects the Company’s appreciation for dedication and hard work while
every round of applause acknowledges the sustained efforts behind these achievements. These honors belong to
those who strive and they continue to inspire others to learn from role models and pursue higher standards.Chairman's Special Commendation Group Photo of Core Management of China Pet Foods2025 ESG REPORT YANTAI CHINA PET FOODS 95 / 96
9·Pet-Friendly Workplace—
8·Supporting the Journey Home— Creating a Warm and Supportive Environment
Facilitating Family Reunions The Company is committed to fostering a comfortable and supportive working environment that enhances employee wellbeing while recognizing the meaningful bond between employees and their pets. To this end employees
Ahead of the 2025 Spring Festival the Company placed employees’ desire to reunite with their families at the heart are permitted to bring their pets into designated office areas subject to appropriate guidelines to ensure safety
of its efforts launching the “Homeward Journey” welfare program to provide thoughtful support and a sense of care. and minimize disruption to daily operations. The presence of pets brings a sense of comfort and positivity to the
A total of 15 coaches were carefully arranged to transport hundreds of employees back to their hometowns ensuring workplace helping to relieve stress encourage interaction among colleagues and create a more dynamic and
a smooth and reassuring journey during the festive period. Through these practical measures the Company enabled creative environment. This initiative reflects the Company’s people-first approach and contributes to a workplace
employees to return home safely and on time to celebrate the Chinese New Year with their families bringing the culture defined by care inclusion and a family-like sense of belonging enabling employees to engage in their work
Company’s care and a sense of warmth to every employee’s journey home. with greater satisfaction and commitment.
10·Party Organization Development
The Company is committed to strengthening Party organization development to guide and support high-quality
corporate development. It continues to enhance the structure and effectiveness of its grassroots Party units.In 2025 the Company’s Party branch was formally upgraded to a general Party branch comprising three sub-
branches and a total of 78 Party members. This has further strengthened its organizational structure andoverall effectiveness. In recognition of its strong performance the Company was awarded the title of “Red FlagAdvanced Party Organization” by the Laishan Economic Development Zone. The Company’s Party organization has
demonstrated a strong grassroots organizational role with Party members acting as role models and leading by
example. It provides robust political and organizational support for the Company’s stable operations and sustainable
development.Visit to the Penglai Pavilion—Qi Jiguang Memorial Hall for educational activities2025 ESG REPORT YANTAI CHINA PET FOODS
2025 ESG REPORT YANTAI CHINA PET FOODS 97 / 982025 ESG REPORT YANTAI CHINA PET FOODS 99 / 100
WANPY Inaugural Global Distributor Conference
1·Supplier Management
Appreciating Global Partners and Opening a New Chapter for 2026
China Pet Foods upholds the principles of transparency fair competition integrity and accountability in all aspects
of supplier management. Through well-developed institutional frameworks on-site supplier audits and dynamic On 2 November 2025 the inaugural WANPY Global Distributor Conference themed “Collaboration We Win”
oversight mechanisms the Company embeds sustainability into its supply chain risk management practices. These was held in Yantai China. The event brought together the Company’s core management team and more than 30
efforts continue to strengthen the procurement and supplier management system - ensuring product and service international partners from around the world for an annual gathering to strengthen partnerships drive shared
quality while safeguarding the rights and interests of customers and consumers. development and exchange views on industry trends and future growth opportunities. Guided by a philosophy
of mutual benefit and win–win cooperation the Company works closely with its global partners to explore new
1. Responsible Procurement in Practice opportunities and expand into new markets. Supported by strong and trusted brands consistently high product
The Company has developed a series of internal regulations to guide responsible procurement including the Supplier quality forward-looking innovation capabilities and a collaborative service system it continues to advance its global
Management Policy Supplier Onboarding Procedure Bidding Management Policy Supplier Evaluation Procedure brand strategy bringing its products and brand to more pet-owning households worldwide.and Supplier Audit Procedure. These policies and procedures standardize procurement processes and reinforce
compliance in purchasing activities.
2. Robust Supplier Management
China Pet Foods has established a rigorous supplier onboarding process setting clear standards that cover
qualifications review production capacity assessment product quality inspection and commercial credibility. These
measures ensure that new suppliers meet foundational requirements and demonstrate long-term growth potential.Throughout the cooperation period the Company conducts both scheduled and unscheduled evaluations of supplier
performance. Assessment criteria include delivery timeliness product quality consistency and responsiveness of
after-sales service. On-site inspections are also carried out to gain first-hand insights into suppliers’ operational
practices.Based on the results of these assessments a comprehensive supplier exit mechanism has been put in place. Suppliers
that repeatedly fail to meet performance benchmarks pose serious quality risks or engage in fraudulent conduct
are promptly removed - ensuring the integrity of the supply base. Dynamic management measures are also applied Speech by Mr. Hao Zhongli Founder & Chairman China Pet Foods Speech by Mr. Jiang Yishan Director & Executive Vice President China Pet Foods
to further strengthen procurement and supplier management practices and safeguard product and service quality
ultimately protecting the interests of customers and end consumers.In addition the Company requires all suppliers to sign a Letter of Integrity which explicitly prohibits any form of
bribery or improper dealings with procurement staff. This reinforces fair and transparent procurement practices
supports cost control and enhances procurement quality.
3. Supply Chain Digitization
China Pet Foods continues to enhance its digital supply chain infrastructure by upgrading its SRM and CRM
systems. These efforts aim to strengthen information management and accelerate the integration of data-driven
and digitalized operations. The goal is to build a unified information exchange platform between the Company and
its suppliers—as well as among internal supplier networks. The platform integrates key modules such as master
data management supplier management performance evaluation quality control procurement collaboration and
contract management. By streamlining these functions the system significantly improves operational efficiency and
ensures full transparency and traceability across every stage of supplier management. Group Photo from the Global Overseas Agents Conference (Partial) Scene of the 1st WANPY Global Overseas Agents Conference
2·Protection of Customer and Consumer Rights
“Customer first” is the Company’s foremost core value and a principle it has consistently upheld throughout its
development. Guided by a philosophy of mutual benefit and win–win cooperation the Company works alongside
its global partners to explore new opportunities and expand into new markets. With strong and trusted brands
consistently high product quality forward-looking innovation capabilities and a collaborative service system the
Company continues to advance its global brand strategy bringing its products and brand to more pet-owning
households worldwide.Keynote Speech Session of the 1st WANPY Global Overseas Agents Conference China Pet Foods2025 ESG REPORT YANTAI CHINA PET FOODS
2025 ESG REPORT YANTAI CHINA PET FOODS 101 / 1022025 ESG REPORT YANTAI CHINA PET FOODS 103 / 104
2·Rooted in Real Economy
1·National Quality Benchmark Recognition— Committed to Regional Growth
Setting an Industry Standard
China Pet Foods recognizes that its success is closely tied to the support of the broader society. Since its founding
China Pet Foods recognized as the ONLY company in China’s beyond pursuing business excellence the Company has actively fulfilled its social responsibilities providing disaster relief supporting those in need and contributing with care and compassion. While maintaining steady business
pet industry to receive a national quality benchmark award growth both the Company and its subsidiaries have remained committed to fulfilling their social responsibilities. In
demonstrating leadership in manufacturing excellence through 2025 China Pet Foods paid nearly RMB 200 million in taxes contributing meaningfully to national revenue and local
globally aligned standards and intelligent technologies. economic development. The Company also played an active role in job creation offering thousands of long-term positions and hundreds of temporary jobs thereby promoting economic vitality and social stability in the regions
where it operates.In September 2025 the CPC Yantai Municipal Committee and the Yantai Municipal People’s Government convened
a city-wide conference to advance the development of leading manufacturing enterprises under the Doubling
Program. At the event 83 companies selected under the “Doubling Program” were recognized with China Pet Foods
included among the award recipients and receiving incentive support.The “Doubling Program” is a key initiative introduced by the Yantai government to optimize industrial structure and
promote the high-quality development of advanced manufacturing. Driven by technological innovation it focuses
on strengthening industrial chain integration and accelerating digital transformation and intelligent upgrading
enabling participating companies to achieve significant improvements in both scale and efficiency. According to
official statistics companies selected under the program account for less than 10% of the city’s above-scale industrial
enterprises yet contribute more than 60% of total industrial output serving as a core engine of local industrial
In December 2025 the China Association for Quality announced the list of “Quality Benchmark Best Practices 2025”. growth. This renewed recognition not only reflects strong endorsement of the Company’s sustained innovation-China Pet Foods was successfully selected for its “quality management practices integrating global standard systems driven growth but also signals confidence in its future development potential.with intelligent technologies” becoming the first and only company in China’s pet industry to receive this national- In December 2025 China Pet Foods was selected among the first batch of enterprises
level recognition. recognized under the “Shandong Premium Products” program (“Lu Lian You Pin”).The “National Quality Benchmark” program is a national-level recognition led by the Ministry of Industry and This recognition serves as authoritative endorsement of the Company’s product quality
Information Technology and organized by the China Association for Quality. It aims to enhance enterprise quality and supply chain competitiveness highlighting its strong capabilities and benchmark
management capabilities and promote the development of world-class companies characterized by excellence position within the pet food industry.in products and branding innovation leadership modern governance and strong core competitiveness thereby
supporting the high-quality development of China’s manufacturing sector. This recognition not only represents
authoritative endorsement of China Pet Foods’ commitment to quality excellence but also underscores its efforts to
elevate quality management practices through a global perspective and digital innovation. It sets a benchmark for
high-quality development in China’s pet industry.2025 ESG REPORT YANTAI CHINA PET FOODS 105 / 106
4·Through Light and Lens—Celebrating the Bond Between People and PetsIn 2025 WANPY exclusively sponsored the creation of the photography exhibition “Home — 100 Dogs’ PortraitsUpon the Sea” as a special presentation project. Set against natural marine landscapes the exhibition uses visual
storytelling and the art of light and imagery to portray the emotional bond and coexistence between people and
their pets. The project vividly reflects the brand’s philosophy of treating pets as family members while presenting
WANPY’s commitment to companion animal welfare in a tangible and engaging way. It also contributes to fostering
a more harmonious relationship between people and pets bringing renewed vitality to a pet-friendly social culture.Outstanding Enterprise for Responsibility and Achievement Outstanding Enterprise for Quality Improvement
and High-Quality Development
5·Compassionate Care—Supporting Animal Welfare
China Pet Foods remains committed to its founding principles of providing high-quality nutrition for pets guided
“Premium Pet Food Made in Shandong” Leading Enterprise Chairman Hao Honored as Distinguished Entrepreneur
of Laishan District by the belief that every life is precious and deserves care and respect. As a Vice Chair organization of the China
3·Fulfilling Corporate Responsibility and Supporting Industry Development Small Animal Protection Association the Company has long been engaged in animal welfare initiatives particularly in supporting the rescue and care of stray animals. The Company regularly donates pet food to local rescue
As Chair Vice Chair and Deputy Director of industry associations China Pet Foods not only ensures strict compliance with shelters on a monthly basis to support the protection and care of stray animals. In addition its teams maintain close
international quality standards within its own operations but also actively contributes to the advancement of a more standardized communication with shelter staff to better understand the animals’ dietary needs health conditions and ongoing care
and sustainable pet food industry in China. The Company provides constructive science-based recommendations through industry plans ensuring that donations are both targeted and effective. Through these efforts the Company seeks to improve
associations and plays an active role in promoting the development and improvement of domestic standards and regulatory the living conditions of stray animals providing care warmth and hope to those in need.frameworks. Through these efforts it contributes to the long-term sustainable development of China’s pet food industry.In 2025 WANPY launched the “Coexistence Initiative” to promote harmonious living between people and pets. The
In the field of scientific exchange as a leading company in the industry China Pet Foods actively fulfils its social responsibilities and
program focuses on supporting stray animal welfare through a range of initiatives including material donations
plays a key role in advancing the science of pet nutrition. At the “First Conference on Pet Food and Nutrition” jointly organized by
the Institute of Feed Research of Chinese Academy of Agricultural Sciences and China Pet Foods Mr. Hao Chenlong Director and public education on responsible pet ownership and the dissemination of knowledge on animal rescue and care.Vice President of the Company and Head of Domestic Marketing was invited to deliver a speech. In addition Dr Nie Shijian Chief Through these efforts WANPY contributes to improving the welfare of stray animals while encouraging the public toScientist of the Company served as a guest moderator for the roundtable discussion on “Opportunities for Innovation in Pet Food adopt responsible pet ownership practices. The initiative reflects the Company’s commitment to social responsibilitywith Chinese Characteristics” engaging with industry experts to explore emerging trends and contribute insights to the coordinated and its efforts to foster a more harmonious and inclusive ecosystem shared by people and pets.development of pet science and industry.Mr. Hao Chenlong Director and Vice President of China Pet Foods Dr Nie Shijian Chief Scientist of China Pet Foods moderating a roundtable
and Head of Domestic Marketing invited to deliver a speech discussion at the First Conference on Pet Food and Nutrition2025 ESG REPORT YANTAI CHINA PET FOODS
2025 ESG REPORT YANTAI CHINA PET FOODS 107 / 1082025 ESG REPORT YANTAI CHINA PET FOODS 109 / 110
China Pet Foods’ success in global markets is rooted in
its unwavering commitment to its founding principles its
long-term strategic focus and its continued investment
in brand value underpinned by sustained dedication to
technological innovation and product quality.
1·Leading Industry Quality Improvement Through Innovation and R&D
Technological innovation is fundamental to maintaining competitiveness and serves as a key driver of industry
development. As a leading company in the sector China Pet Foods leverages its Pet Nutrition and Health Research
Institute to advance foundational research in pet nutrition develop science-based formulations and contribute to the
development of industry standards. The Company is also accelerating the deployment of intelligent manufacturing
driven by digital technologies to enhance coordination across the value chain improving both production efficiency
and product quality. With a global perspective China Pet Foods actively engages in international industry–academia–
research collaboration integrating cutting-edge technologies and building a global innovation ecosystem.These sustained innovation efforts have translated into tangible results.As of 7 April 2026 the Company had been granted a total of 400 patents including 18 invention patents and has
been recognized as a National High-Tech Enterprise for multiple consecutive years. Looking ahead China Pet Foods
will continue to increase its investment in research and development leveraging technological innovation to drive
industrial upgrading and deliver safer healthier products for pets worldwide.In August 2025 the Prime Minister of New Zealand Christopher Luxon led a 28-member delegation comprising
government officials and business leaders on a visit to China. Mr. Hao Zhongli founder and Chairman of China Pet
Foods was received by the Prime Minister in Shanghai as a distinguished representative of China’s pet industry.During the meeting Chaiman Hao introduced the Company’s global development strategy. Leveraging New Zealand’s
unique natural resource advantages China Pet Foods has cumulatively invested more than RMB 800 million in the
country. The investment focuses on the in-depth development of high-quality local raw materials and aims to drive
the expansion and upgrading of primary industries such as agriculture livestock and fisheries through industrial
linkages thereby enhancing product value and supporting the coordinated development of related sectors including
pet food.As the first pet food company listed on the main board of the
Shenzhen Stock Exchange in China China Pet Foods’ presence
in New Zealand reflects the deepening of economic and trade
cooperation between China and New Zealand. Following its
acquisition of NPTC in 2018 the Company has continued to
expand its investment in New Zealand. In 2021 it acquired a
70% stake in Petfood New Zealand International Limited (PFNZ)
the country’s largest pet canning facility. In 2023 it further
invested RMB 465 million to construct a high-end wet pet
food production facility creating several hundred local jobs. In
August 2024 the Company’s NPTC facility in New Zealand was
awarded a Special Contribution Award by the New Zealand
Chinese Building Industry Association (NZCBIA) in recognition
China Pet Foods Signs Strategic Cooperation Agreement with dsm-firmenich of its outstanding contribution to China–New Zealand industry
exchange in the pet sector. The award was personally presented
by Christopher Luxon Prime Minister of New Zealand reflecting
strong recognition from the New Zealand side.2025 ESG REPORT YANTAI CHINA PET FOODS 111 / 112
2·A New Era of Digital Transformation in China’s Pet Industry 3·Upholding Research Ethics and Respecting Life
To support its global strategic expansion China Pet Foods is accelerating its digital transformation leveraging
solutions from SAP a leading global provider of enterprise application cloud services to build an integrated digital From Laboratory Animals to the Ethics of Life: China Pet Foods’ Answer to a Moral Imperative
ecosystem across its entire business value chain. By prioritizing key areas such as financial management supply chain
coordination and production operations the Company has largely established a digital framework characterized by In an era where AI and life sciences increasingly intersect the welfare of laboratory animals is no longer a vague
online business processes visualized management and data-driven decision-making. With SAP systems as a strategic moral question - it has become a matter of enforceable institutional frameworks. On Pet Day in April 2025 China Pet
foundation the Company continues to enhance its capabilities in global resource allocation data asset value Foods took concrete action and upheld pet welfare through both institutional and ethical commitments - officially
realization and organizational agility. unveiling the first Laboratory Animal Ethics Committee in pet food industry. This marked a profound dialogue on life’s
welfare and scientific ethics. In navigating the space between research innovation and ethical responsibility China
Pet Foods offered its answer. The launch of the Committee is not only a forward-looking institutional initiative but
also an extension of the philosophy the Company has long upheld: “Pets are our friends and part of our family”. As
scientific exploration continues China Pet Foods holds fast to a clear conviction: Technology may know no limits but
ethics must always have heart – for respect for life is the only path to the future.
4· Intelligent Quality Control with Globally Aligned Standards
In advancing quality management innovation China Pet Foods has built an industry-leading intelligent quality
management system driven by digitalization and smart technologies. Through the integration of multiple systems
the Company has achieved precise end-to-end control across the entire production process from raw material
intake to finished product delivery. Leveraging AI-powered inspection platforms the Company enhances both the
accuracy and efficiency of quality control through intelligent defect detection. It has also established a full lifecycle
traceability system based on a unique product identification code for each item ensuring that product information
remains transparent verifiable and traceable throughout the value chain. Supported by SAP as its data backbone
and a range of digital management tools the Company has standardized management practices enabled data
connectivity and coordinated production processes across 28 modern pet food manufacturing facilities worldwide.Proven production models developed in China are efficiently replicated across overseas plants ensuring globally
consistent standards and high product quality. Through continuous technological innovation China Pet Foods is
driving the upgrade of quality control systems and setting a new benchmark for intelligent quality management in
Digital Transformation and SAP Project Kick-off at China Pet Foods the industry.In April 2025 under the theme “Infinite AI Shaping the Future” China Pet Foods officially launched its AI Learning
Program to accelerate the adoption of AI across business operations support innovation and foster a culture of AI
learning across the organization. China Pet Foods Intelligent Management System2025 ESG REPORT YANTAI CHINA PET FOODS
2025 ESG REPORT YANTAI CHINA PET FOODS 113 / 1142025 ESG REPORT YANTAI CHINA PET FOODS 115 / 116
End-to-End Quality Management: Safeguarding Every Bite
Building First-Class Factories on As a leading player in China’s pet food sector China Pet Foods treats product quality as its lifeline. We have built a full-chain quality management system that spans raw materials production and testing adhering to
Chinese Soil Creating First-Class human food-grade safety standards to protect the health of every pet.Products for Chinese Consumers.Strict Ra
EnSsturriicnt gR
w Material Controls:
Qawua Mliatyte frrioaml C tohnet Sroolusr: cEensuring Quality from the Source
China Pet Foods firmly believes that China Pet Foods has established industry-leading standards for the inspection of fresh meat ingredients
delivering exceptional product quality enforcing comprehensive oversight across supplier qualifications ingredient traceability and nutritional metrics. Each batch of raw materials undergoes rigorous testing for heavy metals veterinary drug residues
is the rightful responsibility of a and microbial contamination—ensuring full compliance with national standards.national brand and the calling of a Chicken is the primary ingredient in most pet food products. Notably four publicly listed white-feather
broiler companies are based in Yantai with the closest located just over 20 kilometers from China Pet
brand that represents a great nation. Foods. This ensures a seamless 24-hour fresh supply chain covering every step from poultry breeding and
release to slaughter pre-chilling packaging cold-chain logistics factory processing and final pet food
production.This alignment - integrating enterprise
development with national strategies -
is the very reason China Pet Foods has
emerged as a leading representative of
China’s pet food industry on the global
stage.2025 ESG REPORT YANTAI CHINA PET FOODS 117 / 118
Intelligent Manufacturing: Driven by Global Standards Forging Brand DNA
Building Product Excellence Fortifying a Quality Firewall Through a Culture of Quality
China Pet Foods builds and operates its production facilities in strict China Pet Foods holds 20 internationally recognized certifications At China Pet Foods the principle of "quality first" is deeply woven into
compliance with human food-grade standards. Powered by customized including ISO 9001 (Quality Management) ISO 22000 (Food Safety the fabric of its corporate culture. The Company has established a quality
pet food production lines from Bühler (Switzerland) the Company can Management) and ISO 14001 (Environmental Management). The management system that involves every employee breaking down quality
now switch across product types and formulations in just 45 minutes Company has implemented a “three-tier testing” system covering goals to each position and process.allowing flexible manufacturing while minimizing cross-contamination incoming raw materials in-process productions and final products. To
risks between batches. support this a dedicated testing center was built with an investment of Its visualized production workflows foster confidence in every stage of
over RMB 15 million. the manufacturing cycle. This unwavering commitment to quality tightly
Parts of the production line utilize pharmaceutical-grade 316L stainless linked to the mission of building a trusted national brand is a core reason
steel piping paired with advanced CIP/SIP (Clean-in-Place/Sterilize- The center is equipped with advanced instruments such as high- why China Pet Foods continues to gain recognition in global markets.in-Place) systems enabling continuous 24-hour production with no performance liquid chromatography-mass spectrometry liquid
hygiene blind spots. Every step of the process is monitored in real time chromatographs atomic absorption spectrometers amino acid
via the MES (Manufacturing Execution System) with key parameters analyzers and Kjeldahl nitrogen analyzers.automatically recorded and archived—creating a fully traceable
production history. Over 100 indicators are tested ranging from nutrients microbes
veterinary drug residues and heavy metals to vitamins amino acids
toxins and freshness metrics.2025 ESG REPORT YANTAI CHINA PET FOODS 119 / 120
Indices of Guidelines Topics
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—
Sustainability Report (For Trial Implementation)
Outlook
Dimension No. Topic Corresponding Chapter
1 Climate response
In 2026 China Pet Foods will maintain strategic focus and resilience placing the development of its proprietary
brands at the core of its growth strategy. The Company will continue to strengthen its presence in the domestic 2 Pollutant discharge
market while accelerating expansion in overseas markets steadily advancing its global industrial footprint and
3 Waste disposal
consolidating its OEM business. It remains committed to its vision of becoming a global leader in the pet food
industry. 4 Ecosystem and biodiversity protection Green Development
Environment
Environmental compliance management
The Company will further deepen its global operations by increasing investment in R&D strengthening its innovation 5 Shared Prosperity
systems advancing its global industrial footprint and building a more resilient global supply chain. With proprietary 6 Energy utilization
brand development at the center of its global operations it aims to achieve agile global business expansion
optimized resource allocation and mutually beneficial value creation progressing towards becoming a leading 7 Water resources utilization
international corporate group. 8 Circular economy
At the same time the Company will continue to enhance its core proprietary brands unlock global growth potential 9 Rural revitalization Public Relations
reinforce the strengths of its three flagship brands and enhance brand influence across key market segments.
10 Social contributions and Social Welfare Programs
In overseas markets proprietary brands will serve as the primary growth driver expanding from established B2B
strengths into the B2C market capturing greater market share and further expanding the Company’s overseas sales 11 Innovation Driving Industrial Upgrading
footprint. Through coordinated growth in both domestic and international markets the Company seeks to realize its
Ethics of science and technology Through Innovation
ambition of being truly global from inception showcasing the strength of China’s advanced manufacturing and the 12
value of Chinese brands on the world stage. Community 13 Supply chain security Product Safety and Quality
The Company will continue to invest in team development and empower its workforce aligning talent building more 14 Equal treatment of SMEs Protection of Supplier Customer
closely with overall business strategies. It will refine talent acquisition standards build a globally oriented talent 15 Product and service safety and quality and Consumer Rights
pipeline and introduce more effective incentive mechanisms to foster shared growth value creation and the sharing
of achievements. 16 Data security and customer privacy Product Safety and Quality
17 Employees People First
Looking ahead China Pet Foods will remain committed to its founding principles and pursue steady progress
supported by a more resilient industrial chain stronger product innovation and enhanced brand competitiveness 18 Due diligence
while continuing to fulfil its industry responsibilities and mission. Amid the ongoing wave of globalization the Sustainability- 19 Stakeholder engagement Sound Governance Company will continue to strengthen its market position through sustained focus and innovation striving to realize related
its vision of becoming a global leader in the pet food industry. As a Chinese brand on the global stage China Pet governance 20 Anti-commercial bribery and anti-corruption and Steady Operations
Foods aims to deliver higher-quality products and create long-term value for pets and the broader pet industry
worldwide. 21 Fair competition
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